Xiaomi responds to everything!

China Fund News reporter Milo

Lei Jun, who knows how to catch the wind, what are he doing recently?

On May 24th, Xiaomi released its results for the first quarter of 2023. In the current quarter, Xiaomi Group achieved a revenue of 59.5 billion yuan (RMB, the same below) and an adjusted net profit of 3.2 billion yuan, a year-on-year increase of 13% and a month on month increase of 121%.

On the evening of the same day, Xiaomi held a performance conference call, where CEO Lu Weibing and other Xiaomi executives answered a series of questions and revealed the company's latest progress in core making, car making, and large models.

Car building: progress meets or slightly exceeds expectations

Lu Weibing stated that the car manufacturing process is progressing smoothly, and the original plan was to be launched in the first half of next year. Currently, the timeline is in line with or slightly exceeds expectations. This year, Xiaomi Motors will also conduct winter and summer tests as planned.

During the conference call, Lu Weibing also mentioned that in the first quarter of this year, Xiaomi's innovative business expenses, including intelligent electric vehicles, were approximately 1.1 billion yuan.

AI: Do not create a universal large model

Lei Jun revealed some updates on Weibo regarding the hot AI model this year, which attracted attention from all sectors.

Lei Jun stated that Xiaomi has been working in the Al field for many years, with teams such as the Al laboratory, Xiaoai classmates, and autonomous driving. For the large model, we will certainly go all out and firmly embrace it. We are developing some interesting technologies and products, and once we have polished them, we will show them to everyone.

During the phone conference, Lu Weibing revealed more information.

It is introduced that Xiaomi Group started investing in AI in 2017, and when it planned to build cars a few years ago, the staff was mostly from the AI team. In April 2023, Xiaomi officially established the AI laboratory large model team. Currently, there are over 1200 AI personnel involved in businesses such as Xiaoai and autonomous driving.

We won't do a universal big model like OpenAI, which is a very clear conclusion, "Lu Weibing said. Xiaomi will actively embrace AI, deeply integrate it with its own business, and improve its intelligence level.

As of March 31, 2023, the number of IoT devices connected to the Xiaomi AIoT platform (excluding smartphones, tablets, and laptops) increased by 29.2% year-on-year to 618 million; The number of users with 5 or more devices connected to the Xiaomi AIoT platform (excluding smartphones, tablets, and laptops) increased by 29.6% year-on-year to 12.3 million.

Lu Weibing stated that in the future, Xiaomi will continue to explore AI related user scenarios, leverage its technological advantages, and explore more opportunities with partners with an open attitude.

Xiaomi CFO Lin Shiwei added that another strategy for Xiaomi to do AI is to invest and continue to pay attention to investment opportunities in the AI field.

Core Making: Fighting a Long Lasting War

As one of the few independent smartphone manufacturers, Xiaomi's progress in making chips has been closely monitored, especially since OPPO closed Zheku, which has raised concerns about the "growth status" of Xiaomi's chip making business in the market.

Lu Weibing said that Xiaomi fully recognizes the complexity and long-term nature of chip investment, will follow the development laws of the chip industry, steadfastly invest in the long term, be prepared for a lasting war, and prepare for a long-term struggle of 10 or 20 years.

It is reported that Xiaomi's self-developed chips are currently focusing on core areas related to improving user experience, such as imaging, charging, and battery management. At present, Xiaomi has launched the image processing chip Pengpai C1C2, charging chip Pengpai P1, and battery management chip G1. In the future, Xiaomi will continue to focus on research and development related to improving user experience, improving terminal competitiveness, and also better enhancing user experience.

Mobile phones: achieving initial results in entering the high-end market

The global smartphone market demand in 2023 will continue to be under pressure due to factors such as insufficient consumer confidence and weak purchasing power. However, Xiaomi's first-quarter answer sheet is commendable.

According to a report by TechInsights, the shipment volume of smartphones in China reached 62.5 million units in the first quarter of 2023, a year-on-year decrease of 13.1% and a month on month decrease of 12.1%.

According to Canalys data, Xiaomi ranked third in the global smartphone shipment volume in the first quarter, reaching 30.4 million units, with a market share of 11.3%. The smartphone business revenue reached 35 billion yuan, with a gross profit margin of 11.2%, an increase of 3.1 percentage points compared to the previous quarter.

In the high-end field, Xiaomi ranked first among Android manufacturers in the price range of 4000-5000 yuan in smartphone sales in Chinese Mainland in the first quarter, with its market share rising to 24.1% year on year.

Editor: Huang Mei

Reviewed by: Xu Wen

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