Overseas business continues to be Xiaomi's biggest revenue driver for Q2

Sales outside of China accounted for 40% of Xiaomi's revenue.

Xiaomi has released its results for the quarter to June 30, 2019, announcing its revenue rose to almost 52 billion yuan, up 14.8% year-on year.

The smartphone giant's gross profit for the quarter was approximately 7.3 billion yuan, up 28.4% year-on-year, whereas its adjusted net profit increased by 71.7% year-on-year to approximately 3.64 billion yuan. 

Xiaomi sold 32 billion yuan worth of smartphones for the quarter to June, which was primarily attributed to increased smartphone sales and higher selling prices of smartphones. Almost one-third of smartphone revenue comprised of the sale of smartphones priced over 2,000 yuan.

The sale of its devices in overseas markets, India in particular, continues to be the bright spot for Xiaomi. In the second quarter, the company's overseas business saw its revenue grow 33% to 22 billion yuan. 

According to IDC, Xiaomi's smartphones have ranked first in India in terms of shipments for eight consecutive quarters. Contributions from overseas business provided 40% of Xiaomi's total revenue for the quarter.

Xiaomi also announced alongside its results that it would build more retail stores in overseas markets. It currently has 520 authorised Mi Home stores overseas, representing a 92.6% year-on-year growth, of which 79 of them are located in India.

See also: No China, no choice - Why 2019 is the worst smartphone year ever

Xiaomi's Internet of Things (IoT) and lifestyle products segment, which creates home appliances, increased its revenue by 44% year-on-year to 15 billion yuan, and now accounts for 29% of the company's total revenue for the quarter. 

In the same period last year, the IoT and lifestyle products segment only provided 23% of the company's total revenue. 

"Our performance is testament to the success of our 'Smartphone + AIoT' dual-engine strategy and the Xiaomi business model," Xiaomi Chairman and CEO Lei Jun said. 

"Looking ahead, we will continue to strengthen our R&D capabilities and investments so as to capture the great opportunities brought by 5G and AIoT markets and strive towards ongoing achievements for the company." 

As of 30 June 2019, the number of connected IoT devices, excluding smartphones and laptops, on Xiaomi's IoT platform reached approximately 196 million units, a year-on-year increase of 69.5%.

Xiaomi also saw shipments for its smart TVs increase, sending out 2.7 million smart TV units globally for the quarter, up 41% year-on-year. It has also sold over 1 million units of the Mi Band during the first 8 days of its launch in June.

The company's internet business, meanwhile, upped its revenue for the quarter by 15.7% year-on-year to almost 4.6 billion yuan.

In the second quarter, Xiaomi's internet services revenue -- which includes TV internet services, overseas internet services, Youpin e-commerce, and internet finance business -- increased substantially by 109% year-on-year. Advertising and gaming from smartphones continue to the main form of revenue for Xiaomi's internet business however.

Xiaomi released its first 5G smartphone, the Mi Mix 3 5G, in Europe earlier this year, and has plans to unveil a second 5G smartphone that will be available in the China market later this year.

The company also announced last week that it had partnered up with Samsung Electronics to create a world-first 100MP camera sensor. The sensor is 1/1.33-inch in size and has a larger surface area compared to conventional models in order to absorb light better. 

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