Xiaomi reported a 13.6 percent increase in first quarter revenue on Wednesday, beating estimates as the Chinese smartphone maker sold more phones and benefited from the sale of its higher-priced 5G models. The company managed to boost sales despite the influence of Coronavirus, which eroded supply chains and reduced overall demand for smartphones.
Releasing its first quarter earnings, the company said, “Our production in mainland China has resumed to a great extent and smartphone demand has picked up.” Xiaomi’s Optimism is the opposite of rivals Apple And Samsung electronics, Who warned both of them of a difficult year.
Sales rose to CNY 49.7 billion (about Rs 53,000 crore) in the first quarter of 2020 from CNY 43.76 billion (about Rs 47,000 crore), to CNY 47.86 billion (about Rs 50,000 crore) in the same period last year. Is beating The company attributed the jump to its released prices. 5G Phone in China, as well as overseas sales are increasing.
Profits fell by almost a third as Xiaomi’s investment in other companies declined. The company gets most of its revenue from selling mobile handsets, but also makes money by selling online advertisements and other types of consumer hardware.
Xiaomi has faced intense competition in China over the past few years from a major domestic rival Huawei. In addition, the domestic smartphone market in China is shrinking and overseas development has been focused to compensate for this Xiaomi and other smaller Chinese rivals. Market research firm Canalys said that Xiaomi’s shipments to Chinese consumers fell by more than a year in the first quarter, with 18 percent decline in smartphone sales in the country.
In March, the company said it was seeing signs of an improvement in sales in China after weeks of growing taut Coronavirus the outbreak.
© Thomson Reuters 2020