Xiaomi’s EV, AI Units Post First Quarterly Profit
Listen to the full version
Xiaomi Corp. reported its first-ever quarterly profit from its electric vehicle (EV) and artificial intelligence (AI) businesses, marking a milestone in the tech giant’s diversification strategy, though the achievement was overshadowed by the mounting pressure on its mainstay smartphone business.
The company’s EV, AI and other new initiatives segment posted an operating profit of 700 million yuan ($98 million) in the third quarter, reversing a loss of 500 million yuan a year ago, according to its latest earnings report released Tuesday.
Revenue from its EV business nearly tripled to 28.3 billion yuan. The company said it expects to hit its annual sales target of 350,000 vehicles this week, after delivering 108,800 cars in the third quarter. The average selling price of its cars also rose to 260,100 yuan in the third quarter from 253,700 yuan in the previous quarter, driven by strong demand for its high-end SU7 Ultra.
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
- DIGEST HUB
Digest Hub
Back
- Xiaomi’s EV, AI and new initiatives segment posted a Q3 operating profit of 700 million yuan, reversing a 500 million yuan loss a year ago; EV revenue nearly tripled to 28.3 billion yuan.
- Smartphone revenue fell 3.2% year-on-year to 46 billion yuan, with margins pressured by rising memory chip costs and a revised shipment target of 170 million units.
- Total Q3 revenue rose 22.3% to 113.1 billion yuan; adjusted net profit surged 80.9% to 11.3 billion yuan.
- Xiaomi Corp
- Xiaomi Corp. achieved its first-ever quarterly profit from its EV and AI businesses, posting 700 million yuan ($98 million) in operating profit in Q3. Its EV revenue nearly tripled to 28.3 billion yuan, with 108,800 cars delivered. However, its smartphone business revenue fell 3.2%, and rising memory chip costs are impacting profit margins. The company aims for 170 million smartphone shipments in 2025 and is focusing on higher-end handsets to mitigate cost pressures.
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新