Written in 20230903
Xiaomi Group 2023Q2 earnings review:
Xiaomi's financial reports have not been followed for a while. Mainly, Xiaomi is clearly a product company that calculates TOC, while product-type companies have to differentiate their products from a qualitative point of view. The reflection of financial indicators is that at least you have to have a relatively high gross profit margin, preferably a relatively low sales expense ratio, gross margin - sales expense ratio, which reverses the cost of users leaving you and the cost of acquiring users. In other words, how much premium do you get when consumers actually vote for you (from surplus consumers). (Gross margin is the consumer's vote on the brand, that is, in addition to buying your materials/R&D/manufacturing//, consumers are willing to pay more to recognize you. If you sell something with a gross margin of only 0%, it means you have no added value to the consumer; it's just an assembly plant)
Let's look at these two aspects:
① From a qualitative point of view, it is difficult for the mobile phone industry to make a big difference. Previously, Apple, Huawei, and Oppo/vivo were all relatively strong.
Not to mention Apple, it is very strong. Its simple operation interface and integrated ecosystem of hardware and iOS make many people only use Apple. Apple phones are a bit more expensive, but after more than 4-5 years of use, apart from the fact that the camera and memory may not be enough, other phones run smoothly, have enough heat, etc. I've used a few Android models myself (of course, the models that are much cheaper than Apple), and the experience is really hard to be satisfied. It usually doesn't take 1-2 years, it's hot, stutters, crashes...