Home > News content

Relying on volume and ecommerce Xiaomi to return to third place in the world, it still wants to get rid of the middle and low end image

via:CnBeta     time:2020/11/25 22:48:29     readed:160

On the afternoon of November 24, Xiaomi released the third quarter financial report of 2020. One of Xiaomi's most brilliant achievements in this quarter is that, according to the forecast data of canalys, the global smartphone shipment of Xiaomi has surpassed apple, ranking the third in the world, and its market share has broken through a record high, reaching 13.5%. The last time the same thing happened was in the third quarter of 2014.


Alibaba cloud's double 11 global carnival season continues - the first year of dual core 8g cloud server is 286.44 yuan

The financial report data also confirmed this point. In the third quarter, Millet's total revenue reached 72.2 billion yuan, a year-on-year increase of 34.5%. After adjustment, the net profit reached 4.1 billion yuan, up 18.9% year on year. Among them, the output of Xiaomi mobile phones reached 46.6 million, with a year-on-year increase of 45.3%. The revenue of this part reached 47.6 billion yuan, with a year-on-year increase of 47.5%, and this part of revenue accounted for 65.93% of the total revenue of the quarter.

As in the previous quarter, Xiaomi's share price rose significantly before the financial report was released in this quarter. On the 23rd, it closed at HK $27.6 per share, a new high since its listing. According to China Merchants Securities research paper, Xiaomi's share price has soared by more than 60% in three months, thanks to strong growth in smartphone market share and positive sentiment from rising technology stocks, and raised its forecast target price from HK $22 to HK $28. As of November 25, Xiaomi's share price was HK $26.15/share, with a total market value of HK $650.843 billion.

Mobile phone business growth benefits from overseas market

In terms of revenue, Xiaomi financial report shows that in terms of aiot and consumer products, the company's revenue reached 18.1 billion yuan, up 16.1% year-on-year. Internet services grew relatively slowly, with revenue reaching 5.8 billion yuan, up 8.7% year-on-year. Advertising revenue reached a record high in a single quarter, reaching 3.3 billion yuan, a year-on-year increase of 13.7%, and game revenue reached 800 million yuan, a year-on-year decrease of 1.9%.

Thanks to the strong growth of mobile phone shipment, as of September 30, 2020, the number of monthly active users of MIUI reached 368.2 million, with a year-on-year growth of 26.3%. In addition, the number of IOT devices (excluding smart phones and notebook computers) connected to Xiaomi aiot platform reached 289.5 million, an increase of 35.8% year-on-year. The number of monthly active users of AI assistant "Xiaoai classmate" will reach 78.4 million in September 2020, with a year-on-year increase of 35.5%.

According to the financial report, the biggest contribution to Xiaomi's revenue this quarter is the smartphone business. The main reason for the growth of mobile phone business is the growth of smartphone shipment in European market.

According to canalys data, in the third quarter, Xiaomi's smartphone shipment in the European market increased by 90.7% year-on-year, with a market share of 18.7%. For the second consecutive quarter, Xiaomi's market share in the European market reached the top three, and for the first time in Western Europe, it reached the top three.

Jia Mo, an analyst at canalys, said that Xiaomi seized the market from Huawei with a radical approach, and there was some symmetry in the third quarter's shipment. Xiaomi's shipment increased by 14.5 million, while Huawei lost 15.1 million units. In Europe, a key battleground for both sides, Huawei's shipments fell by 25%, while Xiaomi's increased by 88%.

According to the global best-selling mobile phone market rankings released by sunrise big data, Xiaomi has seven models among the top 20 best-selling models under $200 in the third quarter of the world.


Photo source: Sunrise big data. The same below

Sun Yanbiao, President of the first mobile phone industry research institute, told time finance that the rise in sales of Xiaomi's low-end mobile phones is a fundamental reason for the overall increase in sales of Xiaomi's mobile phones.

Sun Yanbiao said that in 2020, the mobile phone market fell to a historical low point because of the epidemic, but also because of the epidemic, the global e-commerce accounted for more than 50% of the retail sales, which increased the base number of millet with e-commerce gene by at least 15%.

However, Jia Mo believes that Xiaomi still faces competition from oppo and vivo. The products of these two manufacturers have covered a wide range of prices in Southeast Asia, and are now entering the European market, providing operators with more choices of high-end products, which may make Xiaomi fall into the dilemma of low-cost competition.

On the strategy of Xiaomi in foreign markets, Wang Xiang, President of Xiaomi, said on the financial report conference call that Xiaomi will continue to pay attention to the growth potential of domestic and foreign markets and expand its internationalization strategy. For example, the European market, which is growing very fast, also includes Latin America, Southeast Asia and other markets. "Our strategy will not change because of this. The company will continue to focus on products, users, channels, both online and offline. "

Wang Xiang believes that millet in the future in the foreign market there is a very large space for growth. Taking Europe as an example, millet ranks in the top three at present, but the market share is only 12% - 13%, so the growth potential is still great. Among them, millet has the highest market share in Spain, but only 34%, while in other regions, the market share is less than 20%. The Latin American market has more room for growth. In some countries in the region, the market share is about 10%, while in some regions it is less than 10%.

He revealed that in the Indian market, Xiaomi has the largest market share for 13 consecutive quarters. The annual market size of India's smart phones reaches 130 million to 150 million, while the country still has a market of 150 million function machines every year. Xiaomi still has a lot of work to do. He said Xiaomi is very optimistic about the development in the next five years.

Can Xiaomi change the image of the middle and low end?

On the financial report conference call, Wang Xiang said that Millet's determination to make high-end products is very big.

"In the future, we will continue to launch very high-end products to meet the needs of our high-end consumers," he said. For us, entering the high-end or flagship market is a completely incremental market. The success of Xiaomi 10 gives us great confidence. I believe you will see more and more high-end products with very high performance appearing in the market. "

Earlier, Wang Mei, vice president of Qinghe University of Xiaomi group, said at the 2020 annual meeting of China's human resource management held on November 21, "Xiaomi thinks that in the future, the losers will win the world, and the young people will win the world."

After network communication, this sentence is believed by netizens that Xiaomi calls its users "diaosi", which also potentially admits that Xiaomi's positioning is in the middle and low end. However, some netizens said that Wang Mei's original words had been deleted after spreading. Her original intention was that "loser" was a positive self mocking label among young people, so Xiaomi dared to say "get diaosi". In addition, expressions such as "of course, young people will not be losers in the future" and "Xiaomi is now a high-end" have also been hidden.

Nevertheless, the words of senior executives still attract the attention of Xiaomi company. On November 25, Xiaomi officially issued a notice saying, "this statement does not represent the company's attitude at all. Wang Mei herself deeply regrets the harm caused to rice noodles and users by his careless wrong remarks, and voluntarily resigns and is responsible for this."

At the annual meeting of the 2020 Yabuli Forum on November 18, Lei Jun specially clarified that many people believed that millet products were middle and low-end, which was a misunderstanding.

He said that ten years ago, he wanted to use Internet experience to help the transformation and upgrading of the manufacturing industry, and to solve the problems of domestic products being looked down upon, poor quality and poor design. Therefore, he improved commercial efficiency and cost performance to help domestic products improve products and design. However, after ten years of work, he found that the difficulty of manufacturing industry was underestimated, and everyone had a low-end understanding of Xiaomi's positioning.

But how to change the public's perception of Xiaomi's positioning in the middle and low end, Lei Jun seems not very sure. Is the high price equal to the high-end? Lei Jun said, do not know, "but, I think millet products only in the expensive products neutral, we can really recognize our efforts."

All these actions show Xiaomi's determination to gain a foothold in the high-end market. After Xiaomi released its second quarter financial report in August, Lei Jun tweeted that Xiaomi's mobile phone was firmly at the high end.

It is worth mentioning that on November 21, Yang Zhe, the former chief marketing officer of Xiaomi company in China, resigned from his management position and has now transferred to marketing consultant of Xiaomi group in China. Yang Tuo joined Xiaomi at the beginning of June this year, and officials said he was transferred due to physical reasons. However, according to latepos later, Xiaomi is hitting the high-end market. It is obvious that he hopes Yang zhe can play his role in Huawei, but his work has not been recognized by Lei Jun.

Sun Yanbiao pointed out to the times finance and economics that according to the time when Yang Tuo joined in, Xiaomi's achievements in the second quarter were not owned by Yang Tuo, while in the third quarter, "the rhythm of the second quarter was maintained, and even a little bit fell back. Xiaomi stood firm in the high-end market and did not add points. At most, it was a draw."

If we measure whether a mobile phone enters the high-end market according to the sales volume of high-priced mobile phones, sun Yanbiao believes that Xiaomi participated in the high-end market in the second quarter, and continued to stabilize the high-end market in the third quarter.

The global best-selling mobile phone market released by Asahi big data showed that in the second quarter, Xiaomi 10 Pro ranked 13th out of the 4000 yuan TOP20 of the world's best-selling mobile phones. The third quarter, Xiaomi in the global mobile phone $800 best-selling model TOP20, Xiaomi 10 Ultra model (that is, the most commemorative version) ranked 14 th.

One thing in common between the two quarters of the list is that before Xiaomi, there were only apple, Huawei and Samsung models.

Still, according to the ranking TOP20 the top-priced $800 best-selling models, Xiaomi has left OPPO and vivo behind, but only one Xiaomi 10 Ultra. selected

Zhang Yi, CEO of AI media consulting, believes that Xiaomi needs to create another brand if it wants to change its brand image. He told Shidai finance and economics that, first of all, from the perspective of marketing, there are not many brands that can go from low-end to high-end, which is determined by its brand image; secondly, in the distribution channel of Xiaomi's low-cost mobile phone, the channel operators must take the quantity as the method, so as to make profits, which leads to the relatively low-end of its customer group as a whole.

China IT News APP

Download China IT News APP

Please rate this news

The average score will be displayed after you score.

Post comment

Do not see clearly? Click for a new code.

User comments