If you"re living outside the United States, there"s a high chance that you have heard of Xiaomi smartphones or you"re currently using one of them. The Chinese OEM has gained a solid reputation in recent years for packing high-end hardware in an affordable smartphone, challenging some of the biggest brands in the industry. In 2021, Xiaomi announced its first foray into the EV market to diversify its portfolio. As it turns out, the decision wasn"t just an uproar, and the segment is now bringing in money for the first time.
As reported by Reuters, Xiaomi"s revenue for Q2 2024 (PDF warning) has exceeded all the estimations, rising 32 percent to 88.9 billion yuan ($12.46 billion). It was already estimated that the company could earn around 85.8 billion yuan ($12.02 billion) for the quarter.
In the second quarter of the year, Xiaomi"s smartphone shipment reached 42.3 million units, demonstrating a 27.4 percent growth and securing the firm a 14.8 percent market share.
Meanwhile, Xiaomi"s auto business has made a significant contribution to the company"s recent earnings. The Xiaomi auto unit, despite being a newcomer to the EV market, contributed around 6.2 billion yuan ($869.2 million) to the company"s earnings for the year"s second quarter. This is a promising sign for the company"s future in the EV market.
Xiaomi began shipping the SU7 EV in April, with prices ranging from $30,800 to $42,000. The vehicle received 88,898 orders in just 24 hours after its initial launch. The company says it has delivered 27,307 EVs in the second quarter of 2024 and aims to deliver 10,000 units each month to customers.
While Xiaomi"s auto business lost 1.8 billion yuan ($252 million) for the quarter, President Lu Weibing says the unit could become profitable as production ramps up. Xiaomi"s goal is to hit the milestone of delivering 120,000 EVs by year-end.