Chinese handset maker Xiaomi’s foray into the Internet of Things (IoT) appears to be going smoothly.
The Hong Kong-listed firm released its audited consolidated results for the first quarter of 2019 ended March 31, 2019 on Tuesday, reporting a 56.5% jump in revenue for the IoT and lifestyle products segment to ¥12 billion (approximately $1.7 billion) compared to the same period last year.
“The first quarter of 2019 was the first quarter after the launch of our dual-engine strategy of ‘Smartphone + AIoT’ and a series of key adjustments,” Xiaomi Founder, Chairman and CEO Lei Jun, said in a media statement.
Xiaomi announced in January its plan to invest ¥100 billion (approximately $1.457 billion) in artificial intelligence and the internet of things (AIoT) in the next five years.
As of the end of the quarter, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform reached approximately 171 million units, a quarter-over-quarter increase of 13.7% and a year-on-year increase of 70%, according to the company.
Meanwhile, its AI assistant (“小愛同學”) had more than 45.5 million monthly active users.
On March 7, 2019, the group said it has established the AIoT Strategy Committee to help its AIoT development and enhance synergy among departments.
Leveraging the effective implementation of its “Smartphone + AIoT” dual-engine strategy, Xiaomi recorded revenue for the quarter of approximately ¥43.8 billion, representing a year-on-year increase of 27.2%.
The company said it focused on the rapid expansion in international markets, with revenue growing 34.7% year-on-year to ¥16.8 billion.
“Looking ahead, we will be investing ¥10 billion in the development of ‘All in AIoT’ in the next 5 years, to capture the development opportunities in the age of artificial intelligence (AI) and IoT, thus laying a solid foundation for Xiaomi’s development in the next 5 to 10 years,” Lei said.
In the first quarter of 2019, Xiaomi said its revenue from international markets grew 34.7% year-on-year to ¥16.8 billion.
It disclosed that it is dedicated to building and expanding its new retail network in overseas markets. As of March 31, 2019, there were 480 authorized Mi Home stores overseas, representing a 93.5% year-on-year growth, of which 79 stores were in India.
Meanwhile, Xiaomi explored new markets in Africa and Latin America, entering into a cooperation agreement with the African e-commerce platform Jumia to sell Xiaomi products and jointly promote the penetration of smartphones in Africa.