Wen | move point technology
The author | Yellow Dust
Edited | Steven Lee
On March 22, Xiaomi released its 2021Q4 financial report and last year's full-year financial report. In the financial report, it shows that Xiaomi's annual revenue reached 328.3 billion yuan, and its adjusted net profit was 22 billion yuan, an increase of 69.5% year-on-year. Among them, the net profit of Q4 in 2021 has improved compared with the previous quarter, but it is still down more than 70% year-on-year.
According to the financial report, after Xiaomi Home exceeded 10,000 stores in October last year, as of December 31, Xiaomi Home stores have reached 10,200. The other part was a significant increase in sales and promotion expenses. However, these measures have not brought more highlights to Xiaomi's overall revenue, and the road to high-end is still stuck in the slogan "benchmarking Apple".
In addition, there is not much disclosure about the trend of car manufacturing, mainly the growth of financial and human investment. For such an answer sheet, some people say that this may be the best year for Xiaomi in a decade, but some netizens believe that Xiaomi has not seized the opportunity of Huawei's sanctions to strive to build a systematic ability to seize more shares of the high-end market.
High-end is still a castle in the air
On the afternoon of February 8, 2022, Xiaomi Group clearly stated at the high-end strategy seminar that the high-end road is the only way for Xiaomi to grow, and it is also the life and death battle for Xiaomi's development, and Xiaomi will unswervingly implement the high-end strategy. At the beginning of 2020, Lei Jun, founder, chairman and CEO of Xiaomi Group, said at the press conference of Xiaomi 10 that Xiaomi mobile phones officially impacted the high-end market. On December 21, 2021, Lei Jun bluntly said that "Xiaomi's high-end mobile phones have officially begun to benchmark Apple."
For more than two years, Xiaomi's high-end ambitions have been revealed. Admittedly, high-end machines have always been a higher source of profit. According to counterpoint data, in the second quarter of 2021, despite Apple's contribution to global mobile phone shipments, the company's revenue and net profit in the global mobile phone market remained strong. In terms of revenue, Apple's revenue accounts for 40% of the revenue of all mobile phone manufacturers in the world, but the profit accounts for 75% of the profit of all mobile phone manufacturers in the world. It was followed by Samsung, with a profit of 13%. This also means that in addition to Apple and Samsung, other mobile phone companies can only share 12% of operating profits. It can be seen that after Huawei was sanctioned, other domestic mobile phone manufacturers did not have much achievement in high-end.
However, according to Xiaomi Group President Wang Xiang in a conference call after the release of the earnings report, Xiaomi's global high-end mobile phone shipments in 2021 exceeded 24 million units, accounting for 13% of shipments; in 2020, it was 10 million units, accounting for 7% of shipments.
In the eyes of Xiaomi, this is already a good achievement, but from the overall perspective of Xiaomi's smartphone business, it is still stretched.
According to the financial report, in 2021, the ASP (average selling price) of Xiaomi mobile phones increased by 5.6% from RMB1039.8 per unit for the year ended December 31, 2020, to RMB1097.5 per unit in the reporting period. Xiaomi attributed the rise to an increase in the proportion of high-end smartphone shipments to total smartphone shipments.
From $1,039.8 to $1,097.5, less than $60. In fact, in 2021, chip, material price increases, and supply chain impact, this increase in ASP is almost negligible. Coupled with the average selling price of more than 1,000 yuan, it is difficult to catch up with apple's long-term dominant price segment of more than 5,000 yuan.
The clouds of car-making are shrouded
The recent dissolution of Apple's car-making team has been boiling over, and everyone can't help but sigh that as strong as Apple, the car-making thing has also been twisted and turned, and it has not been able to replicate the successful path of the mobile phone industry.
It is true that it has not been easy to build a car, but because the industry is in an upward stage, the imagination of the future still attracts large manufacturers to enter the game, and Xiaomi is no exception.
Since the official announcement of the car in March 2021, Lei Jun has promised to come up with 10 billion US dollars in 10 years, and the first batch has invested 10 billion yuan. Xiaomi disclosed in its financial report that the size of the automotive business research and development team has exceeded 1,000 people, doubling from the previous quarter. Later, at the new product launch at the end of 2021, Lei Jun said that Xiaomi would invest 100 billion yuan in research and development funds in the next 5 years.
At the earnings call, the spokesperson said that Xiaomi Automobile is expected to be officially mass-produced in the first half of 2024, and according to the financial report, Xiaomi will continue to expand in core areas such as automatic driving in the future.
Xiaomi, which burns money to build cars, is full of ambition, but the situation it is currently facing is quite embarrassing.
As we all know, the power battery is one of the most critical components of electric vehicles, accounting for the highest cost. The power battery in the current market is basically monopolized by Ningde Times, LG, Panasonic and BYD.
CATL, LG, and Panasonic are all Tesla suppliers, and all production capacity is full, in a state of short supply. According to the statistics of foreign media InsideEVS, 87% of Panasonic's total production in 2021 will be supplied to Tesla, and in 2020, this proportion will even be close to 90%.
Although these power battery manufacturers are expanding production, downstream sales are also soaring. Xiaomi's optional surface is very small, very limited, the problem of power battery is not solved well, one is that the cost-effective gameplay does not work, and the other is that the reputation is likely to be damaged at the beginning.
According to incomplete statistics, more than 20 new energy vehicle companies and nearly 40 models have announced price increases this year. One of the main factors is the rise in raw material prices. Compared with traditional fuel vehicles, new energy vehicles are more dependent on materials such as nickel, lithium, cobalt and silicon-based chips. This is also the culprit that has led to the increase in the price of new energy vehicles. Public data show that the price of lithium carbonate rose to 300,000 yuan / ton in January this year, while the quotation in January last year was about 50,000 yuan / ton.
The general rise in raw material prices, for Xiaomi, has to swing in the balance of profits and the tug-of-war on cost performance, not to mention that the subsidies of relevant departments for new energy vehicles have also been nailed down. On December 31, 2021, the Ministry of Finance, the Ministry of Industry and Information Technology and other four ministries and commissions issued the "Notice on the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles in 2022", which clarified that the subsidy standard in 2022 would decline by 30% compared with 2021 (non-public sector), and announced that it would completely withdraw after December 31, 2022.
Xiaomi originally relied on the growth story to gain the favor of the capital market, but the new energy meat has now rolled out of the new world, not only the number of contestants, fierce competition, and millet entered the mobile phone market earlier, and the use of the mobile Internet era dividends to play a world of the situation is very different, leaving xiaomi time, has not much.
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