Research On Xiaomi Group’s "5G×AIoT" Profit Model

Since its inception,Xiaomi has seized the tide of mobile Internet and achieved rapid growth in smartphone sales.From the release of the first mobile phone in 2011 to the number one mobile phone sales volume in 2014,Xiaomi only took three years to become an important domestic mobile phone manufacturer in one fell swoop.In 2014,Xiaomi keenly realized that the Internet of Things(Internet of Things)is very likely to become the next important outlet for the industry,and began to deploy the Internet of Things in advance.Now with the rapid implementation of 5G technology,with the help of 5G network’s low latency,high speed,and massive connection characteristics,the Internet of Things has realized artificial intelligence(Artificial Intelligence)and transformed into the Intelligent Internet of Things(AIoT).And the advance layout of Xiaomi in related fields has become an important development opportunity and core competitiveness of Xiaomi in the next decade.In 2019,Xiaomi Group officially proposed the "5G+AIoT" dual-engine strategy.In 2020,the "+" will be upgraded to "×",and "5G×AIoT" will become the core strategy of Xiaomi Group in the new decade.Focusing on the 5G smart phone business and IoT consumer products,Xiaomi Group has built the Xiaomi ecological platform with hardware as the entry point.Relying on the Xiaomi ecological platform with complete coverage and smooth experience,it has attracted a large number of consumers and converted Xiaomi hardware users into Xiaomi The users of the Internet service business provide strong business growth for Xiaomi’s Internet services,thereby improving the overall profitability of the Xiaomi Group with the high profit margin of the Internet service business,and realizing the transformation of the enterprise and the sustainable development of profits.Therefore,this article summarizes the profit model of Xiaomi Group as a "5G×AIoT" profit model.This article has five parts including the introduction.The first part is the introduction.First,it introduces the research background of the case paper,and elaborates the theoretical and practical significance of choosing this direction;then reviews the relevant literature,such as the definition and classification of profit models It summarizes the scholars’ viewpoints and makes a literature review;finally introduces the research methods and basic framework of this article.The second part introduces related concepts and theoretical foundations.First,it defines the profit model,introduces the classification and constituent elements of the mobile phone manufacturer’s profit model;then introduces the method of financial performance evaluation of the profit model,including the path of the profit model’s impact on financial performance,and financial Index evaluation method,non-financial index evaluation method.The third part introduces a case of Xiaomi Group’s "5G×AIoT" profit model.First,it introduces the basic situation of Xiaomi Group.Second,it analyzes the basic connotation of Xiaomi Group’s "5G×AIoT" profit model in detail,and analyzes the composition of Xiaomi Group’s profit model again.Factors,and finally analyze the reasons why Xiaomi Group chooses the "5G×AIoT" profit model.The fourth part is to evaluate the financial performance of the "5G×AIoT" profit model of Xiaomi Group.First,analyze the influence path of the "5G×AIoT" profit model of Xiaomi Group on the financial performance,and then carry out the two aspects of financial indicators and non-financial indicators.analysis.The fifth part is the research conclusions and enlightenment.Based on the previous case introduction and analysis,the advantages and disadvantages of the "5G×AIoT" profit model of Xiaomi Group are summarized,which can be used for reference by other mobile phone manufacturers in the industry and draw enlightenment.This article analyzes the "5G×AIoT" profit model of Xiaomi Group using literature research method and case research method.On the basis of introducing the case of Xiaomi Group’s "5G×AIoT" profit model,a detailed analysis of the components of the Xiaomi Group’s profit model and the motivation for selection.When evaluating the financial performance of the "5G×AIoT" profit model of Xiaomi Group,in addition to the analysis of financial indicators,non-financial indicators were selected based on the specific situation and industry background of Xiaomi Group.The results of the financial performance evaluation show that the "5G×AIoT" profit model of Xiaomi Group has improved the profitability of Xiaomi Group and established a dominant position in the industry,which has made Xiaomi Group extremely growth,but its operating capacity and solvency have declined.Through the exploration of this article,it is found that relevant mobile phone manufacturers should pay attention to the development of the intelligent Internet of Things,accelerate the transformation of their value chain into a value network,strengthen technological innovation,make technical reserves,and realize the upgrading and transformation of corporate profit models.