Ryan Haines / Android Authority
- Xiaomi’s Q1 2023 financial results showed a big profit.
- This includes significant gross profit margins across various hardware categories.
- This comes despite Xiaomi’s previous promise of a hardware profit margin of 5 percent.
In the year In 2018, Xiaomi promised to end up with 5% net profit for hardware. The company’s move to offer premium pricing for various products in recent years has called this question into question. Now, the company has released its Q1 2023 financial results, and it’s bringing in big profit numbers.
Xiaomi’s most recent financial results show that gross profit margin across the board reached 19.5% (up from 17.3% in Q1 2022). Meanwhile, the company said its smartphone gross margin reached 11.2 percent (up from 9.9 percent a year ago). The company also highlighted a 15.7% gross profit margin for its IoT and lifestyle products, as well as a 72.3% internet service margin.
The hardware-related figures show the company’s 2018 It appears to contradict his 2018 comments that he caps the profit margin on hardware sales at 5%. “We always maintain a gross profit margin of 5% across all our hardware businesses,” Xiaomi reiterated. Android Authority. In 2021
So does this mean Xiaomi’s 5% profit margin ceiling is a thing of the past? In the year If the 2021 earnings outlook for hardware exceeds 5.0% of net profit, the company says it will “return the excess 5.0% to our customers.” This echoes an earlier claim made by the product.
In the year The same 2021 earnings release revealed that the company’s hardware business had a net profit of less than 2.o% in 2021.
However, we asked Xiaomi if this 5% profit margin is a thing of the past given these recent earnings. We will update the article when the company gets back to us.