On Wednesday Xiaomi announced revenue growth for the first quarter of 13.6%.The Chinese smartphone manufacturer has sold more phones, and has successfully implemented more expensive models with 5G.Xiaomi optimism contrasts with rivals Apple and Samsung, who have warned about the difficulties in the coming year.
Xiaomi, which is often in the media as “Chinese Apple”, has reported revenue growth for the first quarter of 13.6%, exceeding analysts ‘ forecasts. Manufacturer of consumer electronics from China has registered growth in sales, despite the decline in global demand for smartphones on the background of the pandemic.
the Company reports about the resumption of production in mainland China, allowing you to quickly restore demand.
Sales in the first quarter of 2020 increased to $7 billion from $6.2 billion in the same period last year, surpassing analysts ‘ expectations of $6.7 billion. Revenues exceeded the forecasts of experts who expected a figure in the range of 47,86 billion yuan ($6.7 billion).
the Company attributed the abrupt increase in the price of their newly released phones 5G in China and the growth of sales abroad.
Profits fell by about a third to 2.16 billion yuan ($304 million) due to investments in Xiaomi other companies. Chinese vendor receives a larger portion of revenues from mobile phone sales, but also earns money by selling other types of consumer hardware and online advertising.
Adjusted net income (net of income taxes, royalties, bonus payments and penalties) Xiaomi grew by 11% yoy and amounted to 2.3 billion yuan (about $323.9 m million). This figure also is above the average market growth of 2.12 billion yuan (us$298,5 million).
Over the past few years, Xiaomi has faced stiff competition in China, with larger domestic rival Huawei. In addition, the domestic smart phone market in ToChina reduced and, to compensate, Xiaomi and other smaller Chinese competitors have focused on overseas growth.
According to Xiaomi, in the last quarter, overseas revenue increased by 47.8% and amounted to 24.8 billion yuan ($3.5 billion). Xiaomi emphasizes that first received half of revenues outside of their country.
Shipments of Xiaomi Chinese consumers in the first quarter fell by more than a quarter compared to the previous year, according to market research company Canalys, compared to 18% drop in the sales of smartphones in the country. In March, the company said it is observing signs of recovery of sales in China after a few weeks of lock to stop the outbreak of coronavirus.
During the reporting period, the company issued 29.2 million smartphones, improving the result of the previous year by 4.7%. Revenues from sales of devices amounted to 30.3 billion yuan ($4.3 billion) that is by 12.3% more than last year.
Analysts Canalys called Xiaomi fourth-largest market participant, assessing its contribution at 11.1%. Leading positions among Chinese brands is Huawei, but the recent tightening of us sanctions can lead to further growth for Xiaomi.
Recall that the new export rules introduced by the U.S. Department of Commerce, forbidden to sell chips made using American equipment company Huawei, which cuts off the leading Chinese vendor from global chip manufacturers.