Xiaomi Reports Q1 2023 Efficiency: Progress in Chip Manufacturing, Electric Vehicles, and AI

Xiaomi has reported its Q1 2023 efficiency. In this quarter, the corporate achieved income of 8.42 billion USD, and an adjusted web revenue of 452.6 million USD, marking a 13% year-on-year improve and a 121% sequential improve.

In a latest earnings name, Xiaomi‘s President Lu Weibing, along with other top executives, addressed various questions and unveiled the company’s newest developments in chip manufacturing, electrical autos, and AI.

Electric Vehicles: On Track or Slightly Ahead of Schedule

Lu Weibing said that the event of Xiaomi‘s electrical autos is progressing easily. Initially deliberate to be launched in the primary half of subsequent yr, the timeline is both on observe or barely forward of schedule. This yr, Xiaomi‘s vehicles will proceed to endure winter and summer time checks as deliberate. In the primary quarter of 2023, Xiaomi spent roughly 1.1 billion yuan on modern enterprise bills, together with clever electrical autos.

AI: Not Making General Large Models

Xiaomi‘s work in the AI subject, which incorporates the event of huge fashions, has attracted widespread consideration. The firm has been cultivating in this subject for a few years, with groups devoted to AI labs, Xiaoai classmates, and autonomous driving. Lei Jun, the founding father of Xiaomi, said that the corporate is devoted to embracing giant fashions and is presently creating fascinating applied sciences and merchandise.

As of April 2023, Xiaomi formally arrange a big mannequin staff in the AI lab. The firm now has over 1,200 AI personnel concerned in numerous areas resembling Xiaoai and autonomous driving. Lu Weibing clarified, “We won’t make normal giant fashions like OpenAI, that’s a really clear conclusion. Xiaomi will actively embrace AI, deeply combine it with our personal enterprise, and improve the extent of intelligence.

“As of March 31, 2023, the variety of IoT units related to Xiaomi‘s AIoT platform (excluding smartphones, tablets, and laptops) elevated by 29.2% year-on-year to 618 million. The variety of customers with 5 or extra units related to the Xiaomi AIoT platform additionally elevated by 29.6% year-on-year to 12.3 million. Xiaomi goals to repeatedly discover AI-related person eventualities, leverage its technological benefits, and search extra alternatives with its companions in an open perspective.

Chip Manufacturing: Prepared for a Long-Term Battle

Xiaomi is among the few smartphone producers that independently produce chips. The progress of Xiaomi‘s chip manufacturing has at all times attracted a lot consideration, particularly after OPPO shut down Zeku, which has precipitated the market to fret in regards to the “growth status” of Xiaomi‘s chip enterprise.

Lu Weibing said that Xiaomi absolutely acknowledges the complexity and long-term nature of chip funding. The firm will adhere to the event guidelines of the chip trade, persistently make investments in the long run, and put together for a protracted battle, with preparations for long-term struggles of 10 to twenty years. Xiaomi‘s self-developed chips presently deal with enhancing person expertise in core areas resembling imaging, charging, and battery administration. The firm has already launched the Surging C1C2 picture processing chip, Surging P1 charging chip, and G1 battery administration chip. In the long run, Xiaomi will proceed to conduct analysis and growth round enhancing person expertise, enhancing terminal competitiveness, and enhancing person expertise.

SEE ALSO: Xiaomi Founder Lei Jun Comments on Large-Scale Models and AIGC

Smartphones: Seeing Initial Success in the High-End Market

The international demand for smartphones in 2023 is below strain attributable to components resembling an absence of shopper confidence and weakened buying energy. However, Xiaomi‘s Q1 efficiency was noteworthy.

According to a report by TechInsights, the cargo quantity of smartphones in China in the primary quarter of 2023 reached 62.5 million items, a year-on-year lower of 13.1% and a sequential lower of 12.1%. According to information from Canalys, Xiaomi ranked third in international smartphone shipments in the primary quarter, reaching 30.4 million items, with a market share of 11.3%. The income from the smartphone enterprise reached 4.95 billion USD, with a gross revenue margin of 11.2%, a sequential improve of three.1 proportion factors.

In the mid-to-high-end section, Xiaomi ranked first amongst Android producers in the mainland China area for smartphone gross sales in the worth vary of 4000-5000 yuan in the primary quarter, with a year-on-year improve in market share to 24.1%.

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