Xiaomi presented the quarterly results corresponding to the 3rd quarter of 2022. The data shows a significant drop in revenue compared to last year. Special, 9.7% less net profit. However, much of the responsibility for this low margin comes from the large investment in the electric vehicle business, in which $116 million has been invested. Despite the drop in revenue and 7.8% fewer shipments than last year, Xiaomi remains in an enviable position.

Consolidated by a wide margin as the third manufacturer worldwide with a growth of 23.3% in Europe, a first position in Spain and a clear strategy to continue to make money: under the umbrella of “priming” mobile phones are increasingly expensive. to sell. “.

Xiaomi is doing well with premium phones and wants to make the most of them

When it comes to phone sales, Xiaomi is doing well, very well. It is the third largest manufacturer worldwide with 40.5 million units shipped, giving it a global market share of 13.6% (compared to 17.8% for Apple and 21.5% for Samsung). But beyond the pure numbers, there is something in the report that is getting a lot of attention and is key to the brand’s strategy and future: “We continue to implement our strategy of ‘making smartphones premium’.”

Expensive mobiles are sold, the premium segment (mobiles over 400 Euros) represents a record number in 2022, according to data from Canalys and Xiaomi, and it seems clear that expensive mobiles are a stronghold. Xiaomi grew 14% in the premium segment at shipping level thanks to mobile phones such as Xiaomi MIX Fold 2, Xiaomi 12S Ultra or Xiaomi 12S Pro. Cell phones not sold in Spain., but it represents a significant driver for global sales. Therefore, in the not too distant future, it should not be surprising that our country is approaching over 1,000 Euros from these ranges.

beyond themselves flagships, this “primization” strategy has been dominating Spain for the past few years. The Redmi series has members such as the Redmi Note 11 Pro 5G, a terminal with a bill of around 400 euros. Last year was a huge success for the Xiaomi Mi 11 Lite 5G, another premium mid-range terminal with a similar figure. Xiaomi focuses on terminals of around 400 eurosit has top-notch features, but prices are far from the highest range.

Besides the smartphone business, AIoT (smart connected home) is one of Xiaomi’s keys to the future. In fact, when we spoke to Abi Go recently, he made it clear to us that Xiaomi’s future lies in the connected ecosystem, and the connected vehicle will be a part of it. While the net profit of all AiOTs fell slightly from 19.8% to 19.1%, connected devices grew close to 40% year over year.

Judging by the results, it’s time to forget. ridiculously cheap Xiaomi. Profitable mobile is expensive mobile, and betting in the relatively high-billing mid-range is a strategy that seems to have worked.