From a financial reporting perspective, Xiaomi’s artificial intelligence business and electric vehicle business are combined, and it is difficult to separate the performance of each department. Company representatives made it clear during its quarterly reporting meeting yesterday that it is in no rush to monetize its solutions and services in the field of artificial intelligence at all costs, as the field is in the early stages of development.
Image source: Xiaomi
“Currently our investment in artificial intelligence is still large. However, as a large company, Xiaomi is not in a hurry to move towards immediate monetization,” — admit Alain Lam is Xiaomi’s vice president and chief financial officer. It is worth reminding that the company’s net profit fell by 20.3% in the second quarter, the third consecutive quarter of decline.
In the first half of the year, Xiaomi’s R&D expenditure increased by 25.6% year-on-year to US$2.7 billion. As the financial director of the Chinese giant pointed out, about 30% of this belongs to the field of artificial intelligence. He also added that memory prices remain high, as does competition. In his view, the pressure faced by Xiaomi’s business is short-term and should not affect long-term strategy. Smartphones remain the company’s largest source of revenue; last quarter, they cut it by 7.5% to $6.2 billion. Revenue from household appliances and the Internet of Things fell 19.2% to US$4.65 billion.
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