Millet first "off single earnings": "mobile +AIoT" double engine power revenue revenue exceeded expectations
In May 20, 2019, Xiaomi group released its first quarter results in 2019. This is the first financial report disclosed after the launch of the dual engine strategy of "mobile +AIoT". Its total revenue was 43 billion 800 million yuan, an increase of 27.2% over the same period last year. The adjusted profit was 2 billion 100 million yuan, an increase of 22.4% over the same period last year. Revenue earnings exceeded expectations in the previous market. During the reporting period, the number of IoT devices connected to millet IoT platform reached 171 million units (excluding smart phones and laptops), an increase of 70% over the same period last year. Ai Ai Xiaomai students in 2019 March exceeded 45 million 500 thousand monthly users, an increase of 247.2% over the same period last year. The overseas market continues to expand, the India market takes the lead, and the Western European market continues to maintain a high growth rate.
Millet Group founder, chairman and CEO Lei Jun said that millet immediately opened the second stage of millet entrepreneurship after IPO, and carried out a series of major upgrading and adjustment in the company's core strategy, organizational management structure, technology research and development system, product brand system and so on, laying the foundation for the development of millet for 5 to 10 years. The positive results of these adjustments and upgrading have begun to emerge gradually. In the first quarter of this year, Xiaomi officially launched the new dual engine strategy of mobile +AIoT. Its two brands of millet and Redmi were independently operated and launched a series of popular new products. AIoT business also maintained a significant leading edge in the industry. At the same time, following the Chinese region, the systematic adjustment of millet began to spread across the globe in the first quarter.
Many industry analysts believe that under the increasingly fierce competition of mobile phones, Xiaomi has launched the "+AIoT" dual engine strategy, giving full play to its long established advantages and opening a new journey. Compared with traditional hardware manufacturers and traditional household electrical appliance enterprises, Xiaomi's preemptive advantage in the field of AI and IoT is its unique competitive advantage and growth value, so the growth value of mobile +AIoT "dual engine era" is worth looking forward to.
Smart phone domestic market share growth for three consecutive months
During the reporting period, the millet smartphone revenue was 27 billion yuan, up 16.2% from the same year, and the global sales volume reached 27 million 900 thousand. In the first quarter of 2019, the number of millet smartphone shipments ranked fourth in the world, according to the Canalys data. Thanks to the continuous optimization of product mix and the appearance of new products, the average selling price (ASP) of millet smartphones in mainland China and overseas markets increased by 30% and 12% compared to the same period last year.
Last year, a series of active adjustments in the smart phone part achieved initial results in the first quarter. Millet successfully implemented a multi brand strategy, and millet constantly optimized its product portfolio. The smart phones released covered the high-end models represented by millet 9, MIX3 5G and millet 9SE; the middle end models represented by Redmi Note 7Pro and Redmi Note 7 "small diamond Kong"; and the introductory models represented by Redmi7.
Thanks to the implementation of multi brand strategy, the continuous improvement of smart phone portfolio has gained a good market reaction. During the reporting period, the cumulative sales volume of Redmi Note 7 series was over 4 million. The 9 series of millet was released in February 20, 2019. By March 31, 2019, it only exceeded 41 suppliers in 41 days and sold more than 1 million 500 thousand in early April 2019.
The successful release of new products and good market feedback help millet to achieve continuous improvement in shipments and market share in the domestic market. According to the third party data, in the first quarter of 2019, the market share of millet smartphone in mainland China increased for three consecutive months, from 9.5% in January 2019 to 11.8% in March 2019. Among them, based on the success of Redmi Note 7 in the millet 9 series and the dedicated online market, the millet phone successfully won the first place in the domestic online market share.
Small love students monthly living users surged 247.2%
Since the launch of the dual engine strategy of "mobile +AIoT", millet AIoT business has been developing at a high speed. The IoT platform continues to lead. As of March 31, 2019, the number of IoT devices connected to the millet IoT platform (excluding smart phones and notebook computers) reached 171 million, an increase of 13.7% over the same period, an increase of 70% over the same period last year, and the IoT platform maintained a leading position.
Xiao AI has become one of the most active voice interaction platforms in China, and has attracted more and more developers to join the AIoT platform. With more than 1400 skills, the number of active users in 2019 was more than 45 million 500 thousand in the 3 months, which surged 247.2% over the same period last year. As of March 31, 2019, millet AI speakers shipped more than 10 million units. According to Canalys data, the 2018 millet AI speaker shipment ranked second in the domestic market and fourth in the world. In February 2019, Xiaomi released a small love touch-screen speaker, which comes with a 4 inch touch screen, giving users more control over voice, adding more usage scenarios.
During the reporting period, Xiaomi continued to invest in the research and development of AI, and set up the AIoT strategy committee to promote AIoT development and departmental collaboration. According to the Nikkei Chinese data, there are 684 patents in the field of millet AI, ranking 11 in the world. As of March 31, 2019, there were more than 1000 AIoT related patent applications to be approved by millet.
IoT and consumer goods revenue grew by 56.5%
During the reporting period, millet IoT and consumer goods continued to maintain a relatively fast growth rate, with revenue of 12 billion yuan, up 56.5% over the same period last year.
Among them, the smart TV business continued to maintain the leading edge, the two consecutive quarter of shipments ranked first in China's market share, as of March 31, 2019, the world's cumulative shipments of 2 million 600 thousand, an increase of 99.8% over the same period. In April 2019, Xiaomi continued to distribute a variety of household appliances, namely, millet mural TV, millet full screen TV and the vertical air conditioner C1 of MI Jia Internet. Among them, millet mural TV is the first smart TV using remote field voice technology, which supports remote activated voice control function of users. It can wake up little love students without voice control, and control the opening of smart TV and other smart home products.
At present, Xiaomi smart TV can display the notification of smart devices and control centers as compatible smart home products. Moreover, through continuous investment in this field, millet improves the innovative features and functions of IoT products and user experience, realizes seamless interaction between devices, and creates more smart home application scenarios.
Based on the development trend of intelligent interconnection, millet mobile +AIoT strategy is developing rapidly around mobile phones, smart appliances, daily necessities, and so on. It continues to create highly competitive IoT products, bringing consumers more cutting-edge technology experience and more practical intelligent hardware products. Its intelligent hardware products, such as bracelet, electric scooter and sweeping robot, have also been widely welcomed by users. In 2019, Xiaomi introduced several kinds of explosive products such as Mi Jia intelligent door lock, millet wireless charging treasure, photo printer, millet wireless charger, millet Bluetooth headset Air and so on. Among them, the Redmi brand also started to launch IoT intelligent products and household appliances, such as Redmi AirDots wireless Bluetooth headset.
Internet revenue grew 31.8%
During the reporting period, the Internet revenue of Xiaomi reached 4 billion 300 million yuan, up 31.8% over the same period last year. Among them, in the context of the overall slowdown in the advertising industry, millet advertising business still maintained growth momentum, advertising revenue amounted to 2 billion 300 million yuan, an increase of 21.8% over the same period. Game revenue reached 820 million yuan, an increase of 6.8% over the same period last year.
During the reporting period, millet continued to promote the diversification of Internet services revenue, in addition to the mainland China's smart phone device advertising and games outside the Internet revenue soared, an increase of 167.3% over the same period. Including Internet TV services, overseas Internet services, electricity providers and Internet financial services generated income, the contribution to the Internet's total income in the first quarter has reached 31.8%.
It is noteworthy that millet MIUI monthly active users achieved rapid growth, from 190 million in March 2018 to 261 million in March 2019, an increase of 37.3% over the same period last year. The monthly users of smart TV and millet box also achieved sustained and rapid growth, reaching 20 million 700 thousand in March 2019, an increase of 55.1% over the same period last year.
With the continued strengthening of Internet services in the main market, its overseas Internet service has also achieved rapid growth. Following the launch of application stores, video APP and information streaming services in many markets, Xiaomi has focused on Internet services in India, and has released three applications, namely, MiMusic, MiVideo and Mi Pay.
New retail sales are booming in the international market.
In recent years, Xiaomi has vigorously expanded its overseas market. At present, its international business is quite large. While continuously improving the international market share, it also continuously improves the capabilities of supply chain and channel construction in key markets, laying the foundation for long-term sustained and healthy growth of international business.
In the first quarter of 2019, Xiaomi's performance in the international market is still very bright. In the first quarter of 2019, international income was 16 billion 800 million yuan, an increase of 34.7% over the same period last year. As of March 31, 2019, there were 480 authorized outlets in the Xiaomi family, an increase of 93.5% over the same period, of which 79 were in India. In the future, the group will continue to make efforts to build and expand the new retail network in overseas markets.
The shipments of Xiaomi mobile phone overseas continued to grow strongly, according to Canalys data. In the first quarter of 2019, millet smartphones ranked 5 in more than 40 countries and regions, and shipments in Western Europe grew by 115.1% over the same period last year. The market share ranked fourth in terms of smart phone shipments.
At the same time, after years of hard work, Xiaomi has established a strong market position in India.
Millet smartphone has been the first in 7 consecutive quarters in India. At the same time, Xiaomi also monopolized the India online smart phone market, and the mobile phone market in India maintained its first volume in ten consecutive quarters. Xiaomi's market in India has also expanded rapidly. The sales of smart phones in the offline channel in March 2019 are two times that of December 2018.
On the basis of the success of smart phone business, Xiaomi introduced more IoT and consumer goods in India market, because it became the market leader of smart TV and wearable devices and other product categories.
In addition, millet continues to open up new markets, such as Africa and Latin America. It is reported that millet has signed a cooperation agreement with the African e-commerce platform Jumia, will sell millet products in 14 countries in Africa through Jumia in 2019, and jointly promote the penetration of smart phones in Africa.
From the first transcript delivered in 2019, the development of millet after the opening of the dual +AIoT mobile phone is more robust, and at the same time, it continues the momentum of innovation and upward development. With the coming of the era of 5G, the era of intelligent interconnection will usher in the golden period of development. How will millet stand on the top of the draught to create the future, which is worth the expectation of the market.