Tuesday, Jul 14, 2020 | Last Update : 10:04 AM IST

112th Day Of Lockdown

Maharashtra26992414450710482 Tamil Nadu142798925672032 Delhi113740913123411 Gujarat42808298062056 Karnataka4158116249759 Uttar Pradesh3813024203955 Telangana3622123679365 West Bengal3144819213956 Andhra Pradesh3110316464365 Rajasthan2493618630518 Haryana2192916637308 Madhya Pradesh1820713208653 Assam178081141741 Bihar1742112364125 Odisha13737925591 Jammu and Kashmir108276095179 Kerala8323425732 Punjab81785586199 Chhatisgarh4265320219 Jharkhand3963235131 Uttarakhand3608285647 Goa2583154014 Tripura209314752 Manipur16269700 Puducherry146878518 Himachal Pradesh124392710 Nagaland8453400 Chandigarh5884238 Arunachal Pradesh3871452 Meghalaya316462 Mizoram2331510 Sikkim166870
  Technology   In Other news  20 Mar 2019  Xiaomi beats profit view, sees more global expansion

Xiaomi beats profit view, sees more global expansion

REUTERS
Published : Mar 20, 2019, 1:35 pm IST
Updated : Mar 20, 2019, 1:35 pm IST

Revenue for the period increased 27 percent to 44.4 billion yuan, lower than the 47.4 billion yuan average estimate of 13 analysts.

The results show Xiaomi is weathering fairly well a slowing Chinese smartphone market, the world’s biggest, by increasing its focus on markets such as India and Europe.
 The results show Xiaomi is weathering fairly well a slowing Chinese smartphone market, the world’s biggest, by increasing its focus on markets such as India and Europe.

Chinese smartphone maker Xiaomi Corp said on Tuesday its fourth-quarter net profit more than tripled to 1.85 billion yuan (USD 275.59 million), on stronger revenue.

That exceeded the 1.7 billion yuan average estimate of 10 analysts, according to Refinitiv data.

Revenue for the period increased 27 percent to 44.4 billion yuan, lower than the 47.4 billion yuan average estimate of 13 analysts, according to Refinitiv data.

The results show Xiaomi is weathering fairly well a slowing Chinese smartphone market, the world’s biggest, by increasing its focus on markets such as India and Europe.

For the full 2018 calendar year, Xiaomi brought in revenue of 174.9 billion yuan and made a net profit of 8.6 billion yuan.

This marks the third set of financial results for the company since its IPO in Hong Kong. Xiaomi shares have rallied nearly 30 percent since their 2019 lows in January, though they remain well below their July listing price.

To compensate for its slowing home market, the company has aggressively expanded in Europe. After broadly rolling out in the continent in early 2018, the company now ranks as the region’s fourth-largest phone vendor.

Speaking on a call with reporters, Xiaomi CFO Shou Zi Chew said that sales from outside of China made up 40 percent of the company’s revenue in the fourth quarter of 2018, adding that global expansion would be a priority for 2019.

“We will continue to explore the global markets and replicate the success in India in other key markets such as Indonesia and Western Europe,” he said. “We will also expand into more new international markets in 2019.”

Xiaomi has also revamped its smartphone lineup, paving the way to sell more expensive devices that can raise profit margins. In China, the average selling price of the company’s phones increased 17 percent, while overseas they increased 10 percent, according to the company’s earnings report.

In February, upon the launch of Xiaomi’s new flagship Mi 9 phone, founder Lei Jun said the device would be the company’s last such handset priced at under 3,000 yuan (USD 446.99).

Sales from smartphones made up 65.1 percent of Xiaomi’s overall revenue in the fourth quarter. Money from other hardware made up 25.1 percent while internet services made up 9.1 percent.

The latter segment was pivotal to Xiaomi’s pitch to investors in the run-up to its IPO. The company touted its so-called “triathlon business model”, wherein consumers who purchase smartphones go on to use apps and services that generate revenue via advertisements or micropayments.

Xiaomi also stressed it would increase research and development, and plans to invest over 10 billion yuan in artificial intelligence throughout the next five years.

Tags: xiaomi, china, india, sales