- Xiaomi’s Q1 2023 financial results have revealed big profits.
- This includes significant gross profit margins on various hardware categories.
- This comes despite Xiaomi previously pledging to cap its hardware profit margins at 5%.
Back in 2018, Xiaomi pledged to cap its net profit margin for hardware at 5%. The company’s moves to offer premium pricing for various products have put this claim to question in recent years. Now, the company has posted its Q1 2023 financial results, and it’s making big profit numbers.
Xiaomi’s most recent financial results show that its gross profit margin across the board hit a high of 19.5% (up from 17.3% in Q1 2022). Meanwhile, the company says its gross profit margin on smartphones reached a high of 11.2% (up from 9.9% a year ago). The company also highlighted a record 15.7% gross profit margin for its IoT and lifestyle products, as well as a 72.3% margin on internet services.