Xiaomi's 2024 Financial Report Shows Strong Performance: High-End Smartphone Strategy Pays Off, Targeting the 7,000 Yuan Price Bracket

Xiaomi's 2024 Financial Report Shows Strong Performance: High-End Smartphone Strategy Pays Off, Targeting the 7,000 Yuan Price BracketXiaomi Group today released its Q4 2024 and full-year financial report, revealing strong growth, particularly in its smartphone business. The report shows that Xiaomi's smartphone revenue reached RMB 191

Xiaomi's 2024 Financial Report Shows Strong Performance: High-End Smartphone Strategy Pays Off, Targeting the 7,000 Yuan Price Bracket

Xiaomi Group today released its Q4 2024 and full-year financial report, revealing strong growth, particularly in its smartphone business. The report shows that Xiaomi's smartphone revenue reached RMB 191.8 billion in 2024, a year-on-year increase of 21.8%, with a gross profit margin of 12.6%, demonstrating strong profitability and market competitiveness. This marks the success of Xiaomi's high-end smartphone strategy and lays a solid foundation for its future development.

The report highlighted Xiaomi's achievements in the high-end smartphone market. According to third-party data, Xiaomi's market share of high-end smartphones (over RMB 4,000) in mainland China reached 23.3% in 2024, a year-on-year increase of 3.0 percentage points. This data clearly demonstrates the effectiveness of Xiaomi's high-end strategy and its growing influence in the premium segment.

Furthermore, Xiaomi achieved leading positions in specific price brackets. In the highly competitive RMB 4,000-5,000 price range, Xiaomi secured the top spot with a 24.3% market share, a 0.2 percentage point increase year-on-year, solidifying its leadership. Meanwhile, its market share in the RMB 5,000-6,000 bracket reached 9.7%, up 1.3 percentage points year-on-year, showcasing its strong momentum in moving towards higher price points.

Xiaomi's excellent performance in the over RMB 4,000 price bracket, defined by the industry as the high-end market, signifies the successful establishment of its premium brand image. Previously, Xiaomi President Lu Weibing announced that Xiaomi's high-end smartphone sales grew by 43% year-on-year in 2024, exceeding 10 million units, further validating the success of the high-end strategy. Lu Weibing emphasized that Xiaomi's next focus will be on breaking into the ultra-high-end segment above RMB 6,000, aiming to secure a foothold in this highly competitive market.

The recent launch of the Xiaomi 15 Ultra, priced at RMB 6,499 and above, represents a crucial step in this strategic plan. However, Lu Weibing admitted at the launch event that rising costs put the company under pressure. He stated that the Xiaomi 15 Ultra would be the last "ultra" flagship model starting at RMB 6,499. This implies that Xiaomi will further increase the prices of its flagship models, moving towards the RMB 7,000 price bracket in the future.

This price adjustment reflects the challenges Xiaomi faces in the high-end market competition and its strategic planning for future development. While rising costs present pressure, Xiaomi has chosen to maintain profit margins by increasing product prices and continuing to invest in R&D to enhance product competitiveness. The ultimate goal is to consolidate its position in the high-end market and further expand its market share. This demonstrates Xiaomi's unwavering commitment to its high-end strategy and its confidence in future market development.

The impressive figures in Xiaomi's 2024 financial report, particularly its achievements in the high-end smartphone market, provide strong momentum for its future growth. By continuously improving product technology and brand image, Xiaomi is poised to maintain its leading position in the increasingly competitive smartphone market. The move towards the RMB 7,000 price bracket signifies a more proactive and confident approach to high-end market competition. This strategic adjustment not only impacts Xiaomi's own development but also has profound implications for the overall landscape of the Chinese smartphone market.

It's important to note that Xiaomi's success in the high-end market is not a sudden achievement, but the result of long-term strategic planning and continuous efforts. This includes sustained increases in R&D investment, strict quality control, and continuous brand building. Xiaomi's success story offers valuable insights for other domestic mobile phone manufacturers. Whether Xiaomi can successfully break into the RMB 7,000 price bracket and further consolidate its high-end market position will be a key focus of the industry. This is not only crucial for Xiaomi's own development but also relates to the competitiveness of Chinese smartphone manufacturers in the global market. Xiaomi's future development path deserves our continued attention. Its strategic adjustments in the high-end market also provide important references for the development trends of the entire industry. Xiaomi's success provides valuable lessons and inspiration for other manufacturers, prompting them to consider how to gain a foothold and thrive in the high-end market. Xiaomi's experience and case study will undoubtedly have a profound impact on industry development. Therefore, the release of Xiaomi's 2024 financial report is not just a performance report, but also an industry development report worthy of in-depth study. It reflects the development trends of the Chinese smartphone market and foreshadows the intensifying competition in the future market.