On March 24, 2023, Xiaomi announced its 2022 full-year financial report, with a total revenue of 280 billion yuan and a net profit of 8.5 billion yuan, down 66.4% from 22 billion last year.
1. The domestic online market is no longer hot, and destocking has become an important theme
In the past, Xiaomi always talked about the online market in its earnings reports, but this year it is silent, which shows that the online market in 2022 is not as expected, and may even fall below 30%. Once Xiaomi was the dominant position in the online market, but now with the efforts of friends to seize the online market, Xiaomi's advantages are no longer obvious.
In fact, Xiaomi's product line has evolved to today, there have been some problems, rushing to the high-end for the time being, destocking is even more difficult. On the one hand, the Xiaomi digital series is difficult to explode, and the Xiaomi 13 is also a flash in the pan after all, and there are too many mobile phones to choose from in the 4-6K price range. On the other hand, Redmi's Note series and K series, not only the models are complicated, people can't figure out the positioning, but also the cost-effective advantage is weakening, in addition to the old rival iQOO, OnePlus, the two friends are staging a "mixed doubles" drama, so Redmi has to continuously reduce prices to save sales.
2. The car has not moved, and a lot of money has not been rewarded
The reason why this year's net profit fell sharply is inseparable from Xiaomi's car manufacturing.
Building a car is not only a job that burns money, but also "burns people". In 2022, Xiaomi's R&D expenditure will be 16 billion yuan, I am afraid that many of them are invested in the car manufacturing business, and Xiaomi expects that the R&D expenditure will exceed 100 billion yuan in the next 5 years, in addition, in order to drive the automotive business as soon as possible, Xiaomi will continue to deploy R&D personnel to build cars, and the flow of talents will also have a certain impact on the business of other departments.
What is more difficult is that Xiaomi cars will not be able to sell in the next three years, which is also a lot of pressure on revenue.
Lei Jun himself also knows that in today's mobile phone market gradually cooling, building a car may not be possible, but not building a car may only be a dead end.
3, the development of smart home is weak, it seems that the smart is lonely
In the past period, Xiaomi has relied on a huge product line to build its own ecological empire, and the situation is very good.
However, in 2022, the revenue of the IoT business fell by 6.1% year-on-year to 78.9 billion yuan. In fact, last year, the entire major appliance business is on the rise, Xiaomi has declined, which is inseparable from the high-end route it adheres to, less interesting and fresh gadgets, more high-quality, high-price products, to compete with other mature brands, it is not easy.
In addition, smart homes are currently difficult to popularize, and the role can only be regarded as the icing on the cake, and will not bring qualitative changes to the lives of ordinary people.
The above three problems are not big, small is not small, may become the nourishment on the road of Xiaomi's evolution, but also may become a fatal flaw on the high-end road of Xiaomi, seemingly in line with the decline of the market situation, but behind the undercurrent, scale and profit are equally important, will be a new challenge for Xiaomi in 2023.