Xiaomi reported a further slowdown in sales growth in the second quarter, hurt by the depressed smartphone market and weaker Chinese economy. Smartphone shipments were little changed year-on-year at 32.1 million units, while higher prices and growth in other devices and services helped total revenues at the company grow 14.5 percent.
Total revenues reached CNY 51.95 billion in the quarter, of which smartphones made up 61.6 percent. Smartphone revenues rose just 5.0 percent year-on-year to CNY 32.02 billion in Q2, driven by a nearly 5 percent increase in the average selling price to CNY 998.7 (USD 141.4).
Revenues from other products rose 44 percent year-on-year to CNY 14.94 billion, driven by demand for its smart TVs, air conditioners, and newer devices like the Mi Band and Mi Electric Scooter. Xiaomi said it shipped 2.7 million TVs in the quarter, up 41 percent, and the new Mi Band sold over 1 million units within eight days of launch in June.
Internet services contributed CNY 4.58 billion in revenue in the quarter, up 15.7 percent from a year earlier thanks to expansion in fintech and e-commerce services, offsetting lower advertising and gaming revenue.
Xiaomi said it had 278.7 million monthly active users of its services in June, up 34.7 percent from a year ago. Just over 115 million of those were in China. The number of connected IoT devices (excluding smartphones and laptops) on its IoT platform reached 196 million at the end of June, up 69.5 percent year-on-year.
Overseas revenue up 33%
Markets outside China accounted for around 42 percent of Xiaomi's revenues and grew by 33.1 percent year-on-year to CNY 21.9 billion. The company said the growth was helped by an expanding number of its own stores, as well as more deals with operators to distribute its products. Its flagship phones, such as its first 5G device, are available from operators in Switzerland, the UK, France, Spain and Italy.
Xiaomi said it plans to launch a second 5G smartphone later this year in China.
The company's net profit for Q2 was down sharply to CNY 1.96 billion from CNY 14.63 billion in Q2 2018, when it booked a large accounting gain related to its IPO. Adjusted net profit was up 71.7 percent to CNY 3.64 billion in Q2.
