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Xiaomi posts 34 per cent rise in revenue on back of overseas growth as Huawei leaves a gap
- Beijing-based Xiaomi has seized smartphone market share overseas from Android rival Huawei, which has struggled because of US trade sanctions
- Third-quarter adjusted net profit rose 19 per cent to US$623 million
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Xiaomi Corp, one of the world’s largest smartphone vendors, on Tuesday posted a 34.5 per cent increase in third-quarter revenue on the back of strong growth overseas, but warned of potential supply chain constraints during this quarter.
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Some “serious supply shortage” is expected in the December quarter, according to Xiaomi president Wang Xiang in a conference call with analysts after the market closed on Tuesday, following the company’s release of its latest quarterly financial results. He did not elaborate.
Wang said the company will work with its suppliers to ensure that optimal smartphone production capacity is maintained. He indicated that the company experienced a “bigger impact in India due to the shutdown of factories to contain the pandemic”.
He also did not expect the supply chain constraints to have an impact on Xiaomi’s business in Europe, where the company has seized market share from rival Huawei Technologies amid its struggles with US trade sanctions.
Beijing-based Xiaomi reported record high revenue of 72.2 billion yuan (US$11 billion) in the quarter to September 30, up from 53.7 billion yuan a year ago, which beat market analysts’ consensus estimate of 70 billion yuan. Revenue from overseas markets, led by India and Europe, increased 52.1 per cent to a record high of 39.8 billion yuan.
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The company posted an 18.9 per cent increase in adjusted net profit to 4.1 billion yuan, up from 3.5 billion yuan in the same period last year and ahead of the 3.3 billion yuan consensus estimate.
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