Chinese smartphone manufacturer Xiaomi has beaten estimates by reporting a 13.6 per cent rise in its first-quarter revenue, despite the coronavirus spread that staggered economic growth across the globe. According to the brand, it benefitted from selling more phones, as well as by introducing higher-priced 5G models.
In its first-quarter earnings release, Xiaomi stated that its production in mainland China has largely resumed, and smartphone demand has also rebounded pretty quick. This has consolidated Xiaomi’s position as a competent rival of tech giants Apple and Samsung, both of which have warned of a difficult year ahead.
Xiaomi’s sales in the first quarter of 2020 rose to CNY 49.7 billion (approximately Rs. 53,000 crores) from CNY 43.76 billion (approximately 47,000 crores) in the same period the previous year. This is way more than analysts’ expectations of CNY 47.86 billion (approximately Rs. 50,000 crores). The company attributed the sales boost to the growing presence overseas, along with the rising prices for its 5G phones which have been just released in China.
However, despite the sales boost, the company has registered a fall in its overall profits owing to a drop in the value of its investments in other ventures. Apart from manufacturing mobile handsets, Xiaomi receives most of its revenue from other kinds of consumer hardware and by selling online ads.
Over the past few years, the company has been facing an intense competition in China from relatively larger domestic rival, Huawei. In addition to this, the Covid-19 outbreak had also shrunk the domestic smartphone market in China, resulting in many smartphone manufacturers to focus upon overseas growth.
In March, Xiaomi had stated that it was seeing the signs of a sales recovery in Mainland China after weeks of lockdown was lifted. However, according to market research firm Canalys, Xiaomi’s shipments to domestic consumers in the first quarter have plummeted by more than 25 per cent from the previous year, as compared to an 18 per cent fall in smartphone sales in China, mostly owing to the Covid-19 outbreak.
However, Xiaomi is still quite optimistic about the growth prospects in the quarters to come, and intends to continue enhanced sales in China as well as across the globe.
The Dream11 Saga: Legal Battles and Tax Controversies in India’s Online Gaming Industry
boAt and BookMyShow Navigate Troubled Waters Amidst Rapper Shubh Controversy
Will Torrent Pharmaceuticals Acquire Cipla? Is the Indian Pharma Giant in Financial Trouble?
Tata Nexon Facelift Unveiled: A Game-Changer in the Compact SUV Segment
Royal Enfield: The Regal Journey of Luxury Motorcycles
Physics Wallah Edtech: A Revolutionary Success Story
From YouTube to Billion-Dollar Valuation: Explore how Physics Wallah transformed India's EdTech landscape with affordable education.
Ola Electric Temasek Fundraise: Ola Electric Mobility Pvt Ltd Receives $140 Million Boost from Temasek to Accelerate Growth
Snitch, a fashion label for Men’s wear, records ARR of a whopping 100 crores in Q4 of FY’22
D2C fashion brand Snitch attracts an annual return of Rs. 100 crores within 2 years of its inception, aims to become India’s biggest fashion brand for men.
MediBuddy Secures $18 Million in Funding for Expansion and Acquisitions
Viacom18 Secures TV and Digital Rights for Indian Cricket Team’s Home Matches: A Game-Changer for Cricket Broadcasting
Latest6 months ago
Ola S1 Electric Scooter: Everything You Need to Know About the Recall
Analysis5 months ago
Aryan Khan’s clothing collection D’Yavol X: The Devilishly Luxurious collection sold out in a day even with whopping prices!
News7 months ago
ReviewAdda By Rahul Jain: Helping Students Navigate Confusing Admission Processes at Private Universities
Analysis6 months ago
UpGrad vs Eruditus: Contrasting revenues in FY22
Analysis6 months ago
Yulu Revolutionizes Urban Transportation in India with Strategic Partners
Stories5 months ago
BlissClub Founder Minu Margeret: Bringing Inclusivity in Activewear
News5 months ago
Reliance, Circle E Retail in Joint Venture to Aid Hamleys and Rowan Toy manufacturing
Stories5 months ago
Nestle’s Rural Marketing strategy: Expansion in the rural landscape amid boom in business