Source: Bohu Finance
Five days after Xiaomi got its “birth permit,” Xiaomi received another pretty good report card.
According to the latest quarterly earnings report, the third quarter of this year$XIAOMI-W (01810.HK)$It achieved revenue of 70.89 billion yuan. Although it was only a slight increase of 0.6% compared to last year, this is the first time that Xiaomi has achieved year-on-year growth after being sluggish for six quarters. In particular, in the face of negative market growth in the entire mobile phone industry, Xiaomi's net profit increased 1.7 times in the first three quarters, and the gross margin of the mobile phone business also reached a record high of 16.6%.
Why is Xiaomi's mobile phone business recovering while the industry is still declining?
In fact, since the Indian market was hit hard in 2022, Xiaomi began to shift its target to new markets such as Africa, the Middle East, and Latin America. It also used India's “price for quantity” style. After removing inventory, Xiaomi's overall inventory value fell 30% year on year in the third quarter of this year.
Coupled with the explosion of Xiaomi 14 last month, it also confirms the achievements of Xiaomi's high-end development. You see, the overseas market depends on shipment volume, and the domestic market depends on shipping prices. Once this combination punch is punch, you will naturally make a profit!
However, although the mobile phone business has picked up slightly, Xiaomi still has to continue “stocking up food” for the winter.
On November 15, 32 months after announcing the construction of the car, Xiaomi finally obtained a “birth permit”. This also means that if Xiaomi wants to enter a period of money burning, it is calculated according to the minimum cost of 100,000 yuan per vehicle, and the total cost of 100,000 cars is as high as 10 billion yuan.
However, after all, building a car is the last time Lei Jun has invested all his achievements and reputation in his life to start a business, so Xiaomi is serious. Not only did they quickly set up a company to set up a team, but they also built their own factories, developed their own systems, etc.
Now that birth permits have been obtained, Xiaomi has also begun recruiting soldiers to buy horses. According to recruitment information, the base salary for the position of store manager can reach 2/30,000. It's not that Xiaomi is rich; they are really rich; they have more than 100 billion dollars stored on their accounts.
But then again, even with 127.6 billion dollars in hand, Xiaomi was undeniably in time for the late show. When Lei Jun announced the construction of cars in 2021, the penetration rate of new energy vehicles in China was only 10.5%; now, after only 2 years, it has risen to 37.3%.
You see, the first tier has two giants, BYD and Tesla, and the second tier has new forces such as Wei Xiaoli to win and pursue, as well as the Jikkrypton 007 and Zhijie S7, which are also running for “the first smart car for young people,” and Xiaomi Motors, which are still in their infancy, are about to face a fierce competitive environment.
In today's overcrowded NEV market, some people say that fighting a price war is the only way out for Xiaomi cars, but Qiu Xiang feels that this is not necessary. After all, it is still two or three months until the launch. Xiaomi still has a “human-car ecosystem” and a surging OS operating system. Coupled with Mr. Lei's determination to build a car, it's not too late for us to make a conclusion after the launch of the Xiaomi car.
How much do you think a Xiaomi car is priced to become the first car for young people?