Xiaomi Corp. posted its first earnings in nearly two years, a welcome boost for a cellphone maker that has begun aggressively attacking its Chinese rivals with high-end models at home and abroad.
It posted sales of 70.9 billion yuan ($9.9 billion) for the September quarter, against average projections for 70.5 billion. Net income was 4.9 billion yuan, compared with the average estimate of 4.3 billion yuan.
Read also: Xiaomi unveils its first electric car SU7
Xiaomi is emerging from a years-long funk as global demand for smartphones and other electronics crashed and rivals Huawei Technologies Co. to Apple Inc. and Oppo invaded its once dominant position. But the recent launch of a well-received line of Xiaomi 14 flagship phones could rejuvenate growth during the holidays in China, despite an uncertain consumer economy.
Read also: Xiaomi enters the electric vehicle market with SU7: Here’s everything you need to know
There are growing signs that the global smartphone market may finally be breaking out of a trough. Xiaomi and Huawei led an 11% jump in October smartphone sales in China, although that comes from a harsh Covid-era comparison. Huawei, which in August made waves nationwide with the Mate 60 Pro, was responsible for most of that rebound.
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Investors are betting that Xiaomi will be among the biggest beneficiaries of any rebound. It has gained about $19 billion in market value since a June dip on excitement over its latest handset and growing anticipation of a foray into electric vehicles.
Read also: Xiaomi reports better-than-expected profit in the smartphone market
Xiaomi sold more than one million of its latest 14-series devices in its first week in October, president Lei Jun wrote in a Weibo post. And last week, the public got a glimpse of its anticipated five-seater sedan after Beijing approved the vehicle’s roadworthiness. Although it is unclear whether Xiaomi still needs additional licenses for this EV project to continue, the car will be manufactured by the state-owned Beijing Automotive Group Co.
Xiaomi’s latest HyperOS system connects its smartphone products to TVs. The highly-tailored Android-based platform could also connect EVs, the highly regarded new product line that co-founder Lei introduced as his latest entrepreneurial endeavor.
The company, best known for thin profit margins on high-spec smartphones and home electronics, is looking to make a move into the crowded space, but that involves significant amounts of time and money. To offset the heavy investments required, Xiaomi has tried to keep a lid on costs such as marketing.
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This story was published by a wire agency feed without modifications to the text.
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Updated: 20 Nov 2023, 16:10 IST