Xiaomi’s Revenue Grows in Q2 2020 In-spite Of Coronavirus
Revenue from the company’s smartphone sales accounts for nearly two-thirds of its revenue.
Highlights of the Story
- Sales in the quarter ending June 30 rose to CNY 53.54 billion.
- It beat analysts’ expectations of CNY 51.41 billion.
- The company reported revenue growth of 3.1% in the second quarter.
Chinese leading smartphone company, Xiaomi has reported revenue growth of 3.1% in the second quarter. Moreover, it announced profit had more than doubled due to its high-end smartphone business.
Xiaomi’s Acting CFO, Wang Xiang, says, “the sale of our smartphones has reached a huge breakthrough in the second quarter.“
What does the company say?
The sales rose to CNY 53.54 billion (roughly Rs. 57,738 crores), leading the revenue to rise up to 3.1% in the quarter ending June 30. However, a year back, it was CNY 51.95 billion.
The overall revenue from the Xiaomi smartphone business accounts for nearly two-thirds of its revenue. It was reduced by 1.2 percent to CNY 31.6 billion. Moreover. the company has sold over 28 million smartphones in this quarter.
The sales of high-end phones in the overseas markets were 99.2% per year.
According to the company, Xiaomi’s high-end phone saw “explosive growth” in Europe. The shipments for smartphones in Europe were up by 64.9%. This, in turn, led to a profit of 129.8% to CNY 4.49 billion.
According to Refinitiv data, the company reported an adjusted net profit of CNY 3.37 billion. This beats the average market estimate of CNY 2.24 billion.
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The company is heavily dependent on its overseas markets especially India to increase its growth. The company’s revenue from overseas markets grew 10 percent year on year in the second quarter, accounting for 44.9 percent of its total revenue.
Xiaomi sales in India started to improve as the lockdown period came to an end in the second quarter. However, restrictions on production have impacted sales a lot.
Meanwhile, heated issues between the two countries have brought a backlash on the Chinese tech-firms. This all is happening with banning a lot of Chinese apps in India. Out of all the apps, two of them were owned by Xiaomi.
Wang says the company will continue “to promote the mutual understanding and trust between people in India and China.”
They are trying their best to maintain their overseas sales, especially in India where they have the most consumers.
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