Lei Jun once said that Xiaomi’s investment in AI is unreserved and will continue to invest 50 billion yuan to help the strategy of "people, cars and homes are all ecological"! He also said that every technology company in the future will be an artificial intelligence company.
A solid ecological "basic disk" for people, cars and homes
A solid basic disk is the strength of Xiaomi Group and the biggest reliance of innovative businesses such as electric vehicles!
In the second quarter of 2024, thanks to the continuous iterative innovation of product strength and brand strength, Xiaomi’s smartphone business achieved new breakthroughs during the quarter. According to Canalys data, in the second quarter of 2024, Xiaomi’s global smartphone shipments reached 42.2 million units, up 28.1% year-on-year, far exceeding the global average, ranking third with a market share of 14.6%.
In the global market, Xiaomi ranks in the top three in 58 markets and in the top five in 70 markets, and its influence in the international market has been further enhanced, especially in Latin America, the Middle East, Africa and Southeast Asia. Among them, Xiaomi’s mobile phone shipments in the Japanese market increased by 359%, rising to the third place for the first time. In the Latin American market, Xiaomi jumped to the second place in the market with a shipment of 6.2 million units.
This is also the highest record of Xiaomi’s shipments in this region, breaking through the 6 million mark for the first time.Xiaomi’s smartphone business revenue achieved strong growth in 24Q2, reaching RMB 46.5 billion, up 27.1% year-on-year.
In Chinese mainland, the proportion of shipments of high-end smartphones with a retail price of RMB3,000 or above in Xiaomi Q2 increased by 2.0 percentage points year-on-year to 22.1%. Among them, in the price range of RMB 3,000-4,000, RMB 4,000-5,000 and RMB 5,000-6,000, the market share of smart phones was 16.8%, 20.1% and 8.9% respectively, all of which achieved year-on-year improvement, and Xiaomi’s high-end continued to break through.
Not only that, according to Lu Weibing, thanks to the deepening of the strategy of "people and cars are all ecological", Xiaomi IoT and consumer goods business achieved a breakthrough during the quarter. The financial report shows that the revenue of 24Q2 Xiaomi IoT and consumer goods business increased by 20.3% year-on-year to RMB 26.8 billion.
Among them, the revenue of household appliances business increased by 38.7% year-on-year, the shipment of Xiaomi air-conditioning products 24Q2 exceeded 3.3 million units, up by over 40% year-on-year, and Xiaomi refrigerators and washing machines also achieved substantial growth, with shipments exceeding 600,000 units and 400,000 units respectively.
Xiaomi’s Internet business continued to maintain rapid growth, with a revenue of RMB 8.3 billion, achieving another success. With Xiaomi’s continuous deepening and expansion of its cooperation network in the global market, 24Q2 overseas Internet service revenue reached RMB 2.7 billion, up 32.9% year-on-year, accounting for 32.1% of the total Internet revenue.
As of June 30, 2024, the number of IoT devices connected to Xiaomi AIoT platform.(excluding smartphones, tablets and laptops)Year-on-year growth of 25.6%, reaching 822 million, with 5 or more devices connected to Xiaomi IoT platform.(excluding smartphones, tablets and laptops)The number of users increased by 24.2% year-on-year to 16.1 million.As of June 2024, the number of monthly users of Mijia APP increased by 16.8% year-on-year to 96.9 million, both of which were the highest in history.
This is the basic disk of Xiaomi Group, and it has become the biggest backing for electric vehicles to exert their fists and feet.As of June 30, 2024, Xiaomi’s cash reserve has increased instead of falling! It reached RMB 141 billion, which is at the leading level in the industry.
At this point, along with the basic disk business and the multiple arrows of Xiaomi automobile, Xiaomi has formed a full product matrix built by "the whole ecology of people, cars and homes", including people-centered smartphones, family-centered IoT, and cars around mobile scenes.
AI empowerment, business generate strong growth vitality
Xiaomi’s long-term doctrine, in addition to the basic disk, has also invested in new technologies such as AI. Xiaomi insists on using AI to fully empower Xiaomi "the whole ecology of people and cars". In this quarter, Xiaomi’s R&D expenditure reached RMB 5.5 billion, a year-on-year increase of 20.7%, and R&D investment continued to increase substantially.
It is understood that Xiaomi AI technology has achieved innovative breakthroughs in many fields, which not only brings about the improvement of user experience and product competitiveness, but also proves the advanced leadership of Xiaomi’s "AI comprehensive empowerment".
In terms of mobile phone products, Xiao AI’s multi-modal recognition and understanding ability has been upgraded this quarter, supporting AI document question and answer, AI intelligent filming, passerby elimination, AI picture expansion, picture question and answer and other functions, which not only brings users richer and more convenient intelligent experience, but also provides strong support for Xiaomi’s growth in the high-end market.
Xiaomi AI technology is also widely used in the automotive field, which provides strong technical support for Xiaomi’s intelligent assisted driving, automatic parking and voice interaction of Xiaoai classmates.
Netease Technology has learned that Xiaomi Pilot, the intelligent driving system of Xiaomi, is self-developed, all of which support the intelligent assisted driving function with leading experience, and uses an end-to-end big model, that is, the integration of perception, decision-making and planning. In addition to the excellent conventional autopilot experience, it has achieved the extremely narrow berth parking with 5cm accuracy and the parking service with the highest cruising speed of 23km/h with extremely high availability.
In terms of cockpit voice interaction, thanks to the integration of Xiaomi’s self-developed "MiLM-1.3B" end-side large model and the whole vehicle perception multi-modal, the whole link of Xiaomi SU7 voice interaction has been upgraded, which not only covers the function of hand control in the vehicle, but also enables the vehicle to understand the real world like a human. In July 2024, Xiaomi’s first sound large model will also be mounted on the Xiaomi SU7 series for the first time, providing a wake-up defense function outside the vehicle and bringing new users.
However, the empowerment of AI is not only reflected in the improvement of product strength, but also goes deep into the whole process of Xiaomi’s intelligent manufacturing. It can be said that Xiaomi Smart Factory itself is an "AI product".
