Xiaomi released financial reports throughout Q3 2021. The company managed by Lei Jun managed to pocket revenue of 78.1 billion yuan from July to September.
This figure experienced an increase of 8.2% compared to the same period in 2020. Meanwhile, Xiaomi's total net profit was 5.2 billion yuan, an increase of 25.4% YoY.
"Throughout Q3 2021, we continued to strengthen the core strategy of 'Smartphone X AIoT' and continued to develop the premium smartphone market. We are the number 1 brand in terms of shipping in 11 countries. We continue to explore technology and innovation to continue to improve our competitiveness in the premium market. Revenues from the internet services business hit a record high, and we continue to invest heavily in research and development to ensure our products remain competitive," said a Xiaomi spokesperson.
In the midst of a global shortage of components, Xiaomi mobile phone shipments reached 43.9 million units. The Canalys report mentions that Xiaomi's global shipments of mobile phones are in third place with a 13.5% market share. Revenue from the smartphone business reached 47.8 billion yuan with a gross margin of 12.8%, up 4.4 percentage points YoY.
Xiaomi's revenue from markets outside China reached 40.9 billion yuan in Q3 2021 which accounts for 52.4% of total global revenue.
In its report, Xiaomi also revealed that the internet service business is growing rapidly. Cuan earned was 7.3 billion yuan or grew 27.1%, while gross profit earned from this line reached 73.6% or grew 13.1 percentage points YoY.
Internet services business revenue from the international market reached 1.5 billion yuan . It accounts for 19.9% of the total revenue.
For the IoT and lifestyle product segment, the total revenue achieved was 20.9 billion yuan in Q3 2021, up 15.5% YoY. Special note is given to revenues from international markets which set new records despite challenges in ocean shipping logistics.
In this quarter, Xiaomi's TV sales volume decreased compared to 2020. However, smart TV shipments reached 3 million units with revenue growth of up to 19.5% YoY.
Regarding the number of users, Xiaomi noted that it was growing at this time. As of November 22, 2021, the number of 30-day active users of MIUI surpassed the 500 million mark. Previously, as of September 2021, MIUI 30 days of active users were recorded at 485.9 million or up 32% YoY.
Meanwhile, the number of connected AIoT devices (except smartphones, tablets, and laptops) on the AIoT platform exceeds 400 million by September 30, 2021. The number of users who have five or more devices connected to the AIoT platform (except smartphones, tablets, and laptops) reaches 8 million.
In its report, Xiaomi confirms its commitment to research and development. In the first three quarters of 2021, accumulated spending on research and development reached 9.3 billion yuan, an increase of 51.4% YoY.
These efforts have resulted in a number of achievements such as the Xiaomi Smart Glass being introduced in September 2021 to produce information visualization and interactive features. In November 2021, Xiaomi launched its LiquidCool Loop technology which enhances the smartphone's ability to dissipate heat during intensive use.
As of September 30, 2021, the team involved in research and development reached 13,919 employees or representing 44% of all employees.
