Xiaomi Sales Rebounded in 4Q23

Xiaomi saw revenue growth rebound in the fourth quarter of 2023. It was driven by double-digit gains in smartphone sales, with net profit making a sharp jump on one-offs.

Net profit in Q4 surged 50.3% year-on-year to CNY4.7 billion ($652.8 million), aided by a CNY1.3 billion investment gain and a jump in finance income of CNY600 million. Total revenue increased 10.9% to CNY73.2 billion. Smartphone sales grew 20.6% to CNY44.2 billion, with shipments rising 23.9% to 40.5 million units and the ASP dipping 2.6% to CNY1,092.

The decline in ASP was attributed to strong growth in emerging markets such as Latin America and Africa, which have lower ASPs, partially offset by an increase in ASP in mainland China due to the launch of premium models in Q4. In its earnings statement, the vendor highlighted inventory levels returned to normal, with raw material stocks falling nearly 24% from a high in 2021 and finished goods down 5.6% from a peak in 2022.

IoT and lifestyle products sales fell 5.1% to CNY20.3 billion; internet services revenue rose 9.9% to CNY7.9 billion, driven by gains in advertising. The number of connected IoT devices on its AIoT platform increased 25.5% to 739.7 million at the end of December. R&D expenses in the quarter increased 16.2% to CNY5.5 billion, primarily due to an increase in costs related to its smart EV business and other new initiatives.