The prospect of Xiaomi cars has been analyzed before, which is different from the mainstream view of the market on the negative view of Xiaomi's car manufacturing (the mainstream view is that the current domestic new energy vehicles have been relatively volatile, and Xiaomi is only now entering the game, which is late and has a huge investment in car manufacturing, and Xiaomi has no experience in related fields, so there is great uncertainty).
We believe that because Xiaomi has many advantages such as intelligence, mobile phone IoT chain, channels, core users and capital investment and self-development, his entry into the car is actually quite interesting, and the director even thinks that Xiaomi may become one of the ultimate winners of domestic electric vehicles in the future.
However, even if you don't consider Xiaomi cars, standing at the moment, Xiaomi is actually quite interesting.
Xiaomi's inflection point is emergingRecently, Xiaomi disclosed the report card of Q3 2023, and as far as Q3 is concerned, both revenue and profit are much higher than expected. In 2023Q3, Xiaomi Group as a whole achieved revenue of 708900 million yuan, +06%, adjusted net profit increased 183% year-on-year to RMB6.0 billion, and adjusted net profit of core business (excluding innovative business expenses such as car manufacturing) reached RMB7.7 billion, up 161% year-on-year.
Everyone knows that in the past two years, the global consumer electronics business (including mobile phones) has been very sluggish, and Xiaomi Group has also experienced a year and a half of revenue decline, and even in Q3 of 2022, there was a net profit loss attributable to the parent company.
During this period, although Xiaomi was seriously injured due to the weakness of global consumer electronics, there were still many bright spots.
For example, Xiaomi's high-end progress has been relatively smooth, and the overall gross profit margin has continued to rise during the period, reaching 22 in 2023Q372%, and the gross profit margin of the mobile phone business alone also climbed to 166%, an increase of 7 year-on-year7 percentage points. The high-end mobile phone Xiaomi 14 series released not long ago achieved sales of more than one million units in the first week, and was once seriously out of stock, and then under the leadership of Xiaomi 14, the company's overall gross profit margin is expected to further rise, and it is also under the leadership of Xiaomi 14 that Xiaomi Double 11 omni-channel payment exceeded 22.4 billion.
Xiaomi 14 does have the potential to become a hit, and it is not surprising that its Q4 performance should have further growth compared to Q3.
In addition, the gross margin of the company's IoT business also reached 178%, a year-on-year increase of 4An increase of 3 percentage points, a record high, although the current performance of Xiaomi mainly comes from mobile phones (2023Q3 mobile phone revenue is 41.6 billion, accounting for 58.8 percent of the overall revenue.)68%), but IoT is the real grip of Xiaomi's future.
After all, the competitive landscape of the mobile phone industry has been very stable, although Xiaomi is powerful, but it wants to have a global market share of 12In the case of 1%, it is still difficult to have a large increase, especially the market share of high-end mobile phones such as Apple, Huawei, and Samsung is difficult to grab, and it is extremely difficult for mobile phone users who are generally used to Apple and Huawei to transform into rice noodles. In other words, if Xiaomi only makes mobile phones and computers, in fact, users have the highest upper limit, but with iot, it is different, whether the consumer is an Apple mobile phone, Huawei mobile phone, ov mobile phone or Samsung mobile phone users, it does not prevent them from using Xiaomi's IoT products.
It is precisely because of Xiaomi's IoT that as of 2023Q3, its global active MIUI users have reached 62.3 billion, +105%, and the number of connected IoT devices has reached 69.9 billion units. Among them, it is especially worth mentioning Xiaomi TV, according to the data of Ovi Cloud Network, the current Xiaomi TV shipments in Chinese mainland continue to rank first, making its smart TV global monthly active more than 64 million. In addition, Xiaomi's tablet PCs and smart appliances (such as refrigerators) performed very well, among which refrigerator shipments rose by more than 95% year-on-year, and tablet shipments increased by 120% year-on-year, entering the top five in the world for the first time.
After low gross profit drainage products such as mobile phones and IoT bring enough users to Xiaomi, they can be diverted to Internet businesses with high gross margins to monetize (the gross profit of the Internet is as high as 70%+, and mobile phones and IoT are only a dozen points). In 2023Q3, Xiaomi's Internet service revenue reached 7.8 billion, a year-on-year increase of 10%, and it is worth mentioning that its overseas revenue accounted for a year-on-year increase of 5%.8 percentage points to 30%.
Xiaomi has a promising futureEven if you don't consider building a car, Xiaomi's current mobile phone + IoT + Internet business model is very promising. Not to mention anything else, even if there is no longer an increment in Xiaomi mobile phones, as long as it can stabilize the current third position in the world, and then superimpose more and more IoT devices, with the gradual maturity of the 5G and Internet of Things business model and the gradual improvement of the whole house intelligent ecological chain, the future Internet business is very worth looking forward to (the essence of Xiaomi is actually hardware drainage, interconnection ** money).
The company's first model, the SU7, has been declared by the Ministry of Industry and Information Technology, and is expected to be mass-produced and sold in 2024H1.
Looking back on Xiaomi's entrepreneurial history, it is simply a miracle, almost single-handedly subverting the entire copycat machine industry chain, and within a few years, it quickly rose to become one of the most competitive manufacturers in the field of smart phones, and later became the sworn enemy of Apple and Huawei. Especially Huawei, the key is to face an opponent like Huawei, but it is not false at all, and then it will start a full-scale war in the automotive field. The business model is also very groundbreaking, whether it is to open the Internet mobile phone mode, or Xiaomi IoT, for such a company, it is really impossible not to be optimistic.