Xiaomi Corp reported a 36.7% rise in fourth-quarter net profit on Wednesday, as demand for its handsets increased.
Xiaomi group: in the fourth quarter of 2020, the revenue is 70.46 billion yuan, the market is expected to be 75.226 billion yuan, compared with 56.47 billion yuan in the same period last year.
In the fourth quarter of 2020, Xiaomi's smartphone revenue reached 42.6 billion yuan, a year-on-year increase of 38.4%. In this quarter, our global smartphone shipments were 42.3 million, up 29.7% year on year.
1. Overall performance
In 2020, despite the impact of the COVID-19 pandemic and an uncertain global economic environment, we remained focused on executing our business strategies and achieved solid growth for the year. Total revenue for the year reached RMB245.9 billion, representing an increase of 19.4% year-over-year; adjusted net profit for the year was RMB13.0 billion, representing an increase of 12.8% year-over-year. In the fourth quarter of 2020, our revenue amounted to RMB70.5 billion, representing an increase of 24.8% year-over-year; adjusted net profit was RMB3.2 billion, representing an increase of 36.7% year-over-year.
Our commitment to the core strategy of “Smartphone × AIoT” continued to underpin our solid performance. In 2020, our global smartphone shipments increased by 17.5% yearover-year to 146.4 million units. According to Canalys, Xiaomi’s smartphone shipments increased by over 24 million units in 2020, the top gainer among all smartphone companies globally. In the fourth quarter of 2020, we maintained a top three position in global smartphone shipments with a market share of 12.1% and the highest year-over-year growth among the top five smartphone companies globally, according to Canalys. Driven by the strong growth of smartphone shipments, the global monthly active users (“MAU”) of MIUI reached 396.3 million in December 2020, an increase of 28.0% year-over-year. At the same time, our global AIoT platform continues to grow. As of December 31, 2020, the number of connected IoT devices (excluding smartphones and laptops) on our AIoT platform reached 324.8 million, representing an increase of 38.0% year-over-year. Our AI assistant (“ 小愛同學 ”) had 86.7 million MAU in December 2020, representing a year-over-year increase of 43.5%.
Our smartphone business grew significantly and we increased our market share in mainland China. According to Canalys, in the fourth quarter of 2020, our smartphone shipments in the mainland China market grew 51.9% year-over-year, representing the highest growth rate among the top five smartphone companies. Our smartphone shipment market share in mainland China rose from 9.2% in the fourth quarter of 2019 to 14.6% in the fourth quarter of 2020, according to Canalys.
We further solidified our position in the premium smartphone market. In 2020, we sold approximately 10 million premium smartphones globally with retail prices at or above RMB3,000 in mainland China and EUR300, or equivalent, in overseas markets. In December 2020, we unveiled our premium flagship Mi 11, which was well received by the market, with sales surpassing one million units in the first 21 days following its release.
As we continue to expand our overseas business, revenue from overseas markets amounted to RMB122.4 billion in 2020, representing a year-over-year increase of 34.1% and accounting for 49.8% of our total revenue. As of December 31, 2020, our products have been sold in more than 100 markets globally. According to Canalys, we ranked among the top five vendors in terms of smartphone shipments in 54 countries and regions globally in the fourth quarter of 2020.
In 2020, our global business recovered from the impact of the COVID-19 pandemic and maintained steady growth. Since the outbreak of COVID-19, Xiaomi collaborated closely with upstream and downstream business partners to accelerate the resumption of work and production. During the pandemic, our products and services helped people enrich their lives and stay connected, and demand for our products remained healthy. With the easing of lockdown restrictions in major markets during the second half of 2020, our business rebounded. We continued to execute our “Smartphone × AIoT” strategy, and our solid performance for the year demonstrates the resilience and competitiveness of our business model.
2. Smartphones
In 2020, our smartphone business maintained solid growth momentum. Smartphone revenue amounted to RMB152.2 billion for the year, representing an increase of 24.6% year-overyear. In 2020, our global smartphone shipments totaled 146.4 million units, an increase of 17.5% year-over-year. In the fourth quarter of 2020, our smartphone revenue amounted to RMB42.6 billion, representing an increase of 38.4% year-over-year. In this quarter, our global smartphone shipments reached 42.3 million units, representing a year-over-year increase of 29.7%. According to Canalys, in the fourth quarter of 2020, we continued to rank 3rd globally in terms of smartphone shipments with a market share of 12.1%, and achieved the highest yearover-year growth among the top five smartphone companies globally. In 2020, our smartphone business grew significantly in mainland China. According to Canalys, in the fourth quarter of 2020, our smartphone shipments in mainland China market increased by 51.9% year-over-year, achieving the highest year-over-year growth among the top five smartphone companies. Our mainland China market share climbed to 14.6% in the fourth quarter of 2020 from 9.2% in the fourth quarter of 2019.
We continued to execute our dual-brand strategy. In 2020, we sold approximately 10 million premium smartphones globally with retail prices at or above RMB3,000 in mainland China and EUR300, or equivalent, in overseas markets. In December 2020, we unveiled Mi 11 in mainland China, the world’s first smartphone to feature the Snapdragon 888 chipset. With prices starting from RMB3,999, Mi 11’s debut achieved widespread popularity as shipments surpassed 1 million units in the first 21 days following its release. In the first month after its release, over 50% of Mi 11’s users were new Xiaomi users (based on internal data tracing back to November 1, 2017). Due to increased sales of our premium smartphones, our smartphone ASP increased by 6.1% to RMB1,040 in 2020 and by 6.8% to RMB1,009 in the fourth quarter of 2020, both on a year-over-year basis.
Our Redmi brand remained committed to making advanced technology accessible to the mass market. In February 2021, we unveiled the Redmi K40 series, of which Redmi K40 Pro and Redmi K40 Pro+ are both equipped with the Snapdragon 888 chipset. These smartphones offer compelling price-to-performance ratio at prices starting from RMB1,999. Furthermore, Redmi Note 9 series has been well received by the market and sold more than 30 million units globally between its debut on March 12, 2020 and December 31, 2020.
We continued to build our distribution channels in mainland China. In the online channel, we further strengthened our market position. According to third-party data, our online smartphone market share in mainland China in terms of shipments increased from 18.5% in the first quarter of 2020 to 29.5% in the fourth quarter of 2020. During the Singles’ Day and the Double 12 Shopping Festivals in 2020, Xiaomi and Redmi brand smartphones together ranked 1st in sales volume among Android smartphones on Tmall.com, JD.com, and Suning.com. In the offline retail channel, we significantly increased the number of retail stores while emphasizing operating efficiency.
3. Overseas markets
In 2020, our revenue from overseas markets increased 34.1% year-over-year to RMB122.4 billion, accounting for 49.8% of our total revenue. In the fourth quarter of 2020, our revenue from overseas markets rose 27.6% to RMB33.8 billion, accounting for 47.9% of our total revenue. As of December 31, 2020, our products have been sold in a more than 100 countries and regions around the world. According to Canalys, we ranked among the top five vendors in terms of smartphone shipments in 54 countries and regions globally in the fourth quarter of 2020.
We continued to gain strong momentum in major markets around the world. According to Canalys, in the fourth quarter of 2020, we ranked top 3 for the 3rd consecutive quarter in Europe in terms of smartphone shipments with a market share of 15.3%. According to Canalys, in the fourth quarter of 2020, we ranked No. 1 in Central and Eastern Europe for the first time as our smartphone shipments increased 17.5% year-over-year to reach 24.7% market share. In the fourth quarter of 2020, we retained top 3 position in Western Europe as our smartphone shipments increased 57.3% year-over-year, with 10.9% market share. In particular, our smartphone shipments in Spain ranked No.1 for the 4th consecutive quarter with 27.0% market share. Additionally, our smartphone shipments increased by 86.2% in France, by 61.6% in Italy and by 139.8% in Germany, all on a year-over-year basis in the fourth quarter of 2020, according to Canalys.
In India, we ranked No.1 for the 13th consecutive quarter in the fourth quarter of 2020 in terms of smartphone shipments, with a market share of 27.4%, according to Canalys. In the fourth quarter of 2020, we also experienced meaningful growth in other emerging markets. According to Canalys, our smartphone shipments ranked 4th in Latin America in the fourth quarter of 2020, with a year-over-year growth of 215.4%. Our market share in the region increased to 9.1% in the fourth quarter of 2020 from 2.7% in the same period of 2019. In the fourth quarter of 2020, our smartphone shipments also attained a top 4 position in the Middle East and Africa.
In 2020, we further strengthened our channel capabilities in overseas markets. In 2020, we sold more than 16.0 million smartphones via online channels in overseas markets excluding India, an increase of over 90.0% year-over-year. In addition, we shipped more than 9 million smartphones through carrier channels in overseas markets excluding India, an increase of over 380.0% year-over-year. According to Canalys, our smartphone market share in Western Europe carrier channels increased to 7.4% in the fourth quarter of 2020 from 4.6% in the third quarter of 2020 and from 2.6% in the fourth quarter of 2019.