Xiaomi’s profit jumps as smartphone shipments surge

Xiaomi

Xiaomi has reported a 19% jump in third-quarter net profit, beating estimates, as the Chinese smartphone manufacturer’s shipments over the quarter surged by 45.3% on a year earlier.

Xiaomi Corp has grabbed market share in China and Europe because its rival Huawei has faced US sanctions which have struck its supply chain.

The company expects it will continue to gain market share after the most recent round of US sanctions against Huawei Technologies interrupted its distribution chains in August. .

Xiang Wang, Xiaomi’s president, when asked if Huawei’s issues had aided Xiaomi, stated that the firm has been “paying attention to what is happening into the market,” but was ongoing with its own strategy.

Xiaomi’s smartphone earnings rose to 47.6 billion yuan, an increase of 47.5% at the same period, it said in a statement. Overall, quarterly earnings climbed to 72.1 billion yuan, up from 53.7 billion yuan.

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“In Q3 we reached a record high (in revenue), but we only have a market share of 13.5%, so the room for growth is huge,” Wang stated in the business’s earnings call.

Analysts had on average forecast that Xiaomi would report third-quarter net profit of around 3.28 billion yuan, based on to Refinitiv data.

Xiaomi put orders for as much as 100 million phones between the fourth quarter of 2020 and quarter of 2021, up 50% on projections before the August restrictions, consultancy Isaiah Research said.

But, Wang said that at Q4 that a shortage of components would be challenging for the company.

The business became the third-biggest seller of handsets in the next quarter, shipping 47.1 million units using 45% growth, consultancy Canalys said. Samsung is the biggest, followed by Huawei.

Xiaomi is also trying to court Huawei’s distributors in Southeast Asia and Europe in the hopes of gaining exclusive deals, also is actively targeting Huawei’s high-end market share in China, a supply at Xiaomi acquainted with the matter has stated.

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The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Jonathan Landay. Editing by Steve Orlofsky.

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