Xiaomi reported a further slowdown in revenue growth in the second quarter. Revenues were up just 3.1 percent year-on-year to CNY 53.54 billion, as the coronavirus outbreak hurt sales in Europe, India and other markets. Gross profit rose 6.1 percent to CNY 7.70 billion, helped by a growing share of services in the sales mix, while adjusted net profit fell 7.2 percent to CNY 3.7 billion.
Smartphone shipments totaled 28.3 million, down from a reported 29.2 million in Q1 2020. A higher proportion of mid- to high-end smartphones helped the average selling price increase by 11.8 percent year-on-year and by 7.5 percent quarter-on-quarter.
Xiaomi said the lockdowns implemented in several countries in Q2 to contain the coronavirus had a significant impact on its business. Sales have started to recover in recent months, with for example India back in July to 72 percent of the pre-pandemic sales level of January. Excluding India, the average daily number of smartphone activations outside China had reached 120 percent of the pre-pandemic level recorded in January.
Smartphone revenues fell 1.2 percent year-on-year to CNY 31.6 billion in Q2. This was offset by growth in other products, notably TVs, and revenues from the IoT and lifestyle products segment rose by 2.1 percent to CNY 15.3 billion. Internet services contributed CNY 5.9 billion in revenue, up 29.0 percent from a year ago.
Xiaomi said it counted 343.5 million monthly active users of its MI UI in Q2, up 23.3 percent year-on-year. The figure includes 109.7 million users in mainland China.
The company reported a net profit for the quarter of CNY 4.49 billion, more than double the CNY 1.96 billion a year earlier. This was supported by CNY 1.16 billion in disposal gains on Xiaomi's portfolio of investments in over 300 companies.
