The revenue of smartphone manufacturer Xiaomi rose in the second quarter with a record of 64 percent compared to a year earlier.
Revenue reached CNY 87.8 billion (approximately Rs. 1,00,720 crores), up from 53.54 billion a year earlier and surpassed analyst expectations of CNY 84.53 billion (approximately Rs. 96,900 crores).
Net profit reached CNY 6.32 billion (about Rs. 7,240 crores), up 87.4 percent year on year and above analyst expectations.
US government sanctions against Xiaomi’s rival Huawei have effectively crippled the tech giant’s smartphone division and allowed Xiaomi, along with Chinese Android makers Oppo and Vivo, to increase their market share.
According to research firm Canalys, Xiaomi’s share of the global smartphone market grew 83 percent year-on-year in the quarter ended June. It shipped 52.8 million phones, making it the second best-selling brand in the world for the first time in its history, after Samsung and ahead of Apple.
Domestically, however, the company is still behind Oppo and Vivo in raw unit shipments.
Xiaomi also announced on Wednesday that it is acquiring autonomous driving startup Deepmotion for about $77.37 million (about Rs. 575 crores), in an effort to boost its own R&D efforts in the area, the company’s president said. , Wang Xiang.
In March, Xiaomi announced that it would spend $10 billion (about Rs. 74,260 crores) to enter the electric vehicle sector. The company has yet to formally announce any partnerships or plans for its first model, though public posts on job boards show the company is aggressively recruiting talent.
Last week, Reuters reported that China Evergrande Group was in talks to sell its EV unit to Xiaomi. Xiaomi said it has been in contact with several automakers but has yet to decide which one to work with.
The company gets the majority of its revenue from cell phone sales, but also makes money by selling online advertisements and other types of consumer hardware.
Growth in Xiaomi’s internet services unit, which primarily earns money by placing ads in various apps, grew 19.1 percent year-over-year.
© Thomson Reuters 2021
