[LINK] Xiaomi .. second largest smartphone maker, ahead of Apple

Stephen Loosley StephenLoosley at outlook.com
Wed Aug 25 21:10:38 AEST 2021

Xiaomi posts 64 per cent rise in revenue as the company aims to be world’s largest smartphone maker

The Beijing-based company has announced an ambitious goal to become the world’s largest smartphone maker in three years

Xiaomi’s profit lifted by gains in smartphone market share and sales of internet services

By Jane Zhang in Hong Kong and Che Pan in Beijing  Published: 6:25pm, 25 Aug, 2021

Chinese smartphone giant Xiaomi Corp posted a 64 per cent increase in second-quarter revenue, just weeks after the Beijing-based company announced an ambitious goal to become the world’s largest smartphone maker in three years.

Hong Kong-listed Xiaomi on Wednesday posted slightly better-than-expected revenue of 87.8 billion yuan (US$13.56 billion) for the quarter ended June 30, up from 53.5 billion yuan a year ago.

The robust performance was helped by gains in smartphone market share at home and abroad.

Net income jumped 84 per cent to 8.3 billion yuan in the same quarter, beating the 6 billion yuan consensus from analysts compiled by Bloomberg.

Founder Lei Jun says Xiaomi wants to be the world’s top smartphone maker

Xiaomi said its smartphone revenue grew 86.8 per cent to 59.1 billion yuan, while its smartphone shipments rose 86.8 per cent to 52.9 million units in the June quarter.

Xiaomi has been able to overtake domestic rival Huawei Technologies Co after the Shenzhen-based giant has struggled under the weight of US trade sanctions that have cut off its access to US-origin technology.

In the second quarter, the 11-year-old company topped Apple to become the world’s second-largest smartphone vendor with 17 per cent market share, according to research firm Canalys.

The company also became the No 1 vendor in Europe for the first time in the same period, shipping nearly 13 million units to reach 25 per cent market share, according to a recent report from Strategy Analytics.

Revenue from Xiaomi’s Internet of Things and lifestyle products segment grew 36 per cent to 20.7 billion yuan during the same period, while its internet services segment increased sales by 19.1 per cent to 7 billion yuan - a record high.

The company’s share price has dropped 28 per cent since the start of the year, closing at HK$25.35 on Wednesday before the results were announced, in line with a tech sector sell-off in China after Beijing launched a regulatory crackdown on multiple fronts.

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