Xiaomi Achieves Sales Growth for the First Time in Two Years Amid Market Recovery
Xiaomi has recorded a positive surge in its financial performance,
achieving an increase in its revenues for the first time in the past two years.
This result marks a positive development for the smartphone manufacturing giant,
which has been vigorously competing in both the Chinese
and global smartphone markets by launching innovative models.
Topic
in focus
in focus
Xiaomi’s revenues reached 70.9 billion yuan (9.9 billion dollars) in the last quarter ending in September, surpassing the estimated average of 70.5 billion yuan. The company’s net income also reached 4.9 billion yuan, exceeding the average estimates of 4.3 billion yuan.
Xiaomi is looking forward to increasing its global smartphone shipments during the holiday season, with expectations of surpassing a 5% increase in sales compared to other major companies in 2023. Executives are also optimistic about achieving additional growth in 2024, according to their statements after announcing the profit results.
Market Recovery
Indications point towards a recovery in the global smartphone market,
with Xiaomi and Huawei leading an 11% jump in smartphone sales in October in China.
This comes amid improved economic conditions after a period of global decline in demand for phones and electronic devices.
The recent launch of Xiaomi 14 smartphones has contributed to this growth, receiving widespread acclaim.
It is expected to stimulate renewed demand during the holiday season in China, despite economic challenges.
Electric Cars Market
Xiaomi 14 smartphone sales exceeded one million devices in the first week of its launch in October. In a significant strategic shift, the company provided a first look at its electric car to the public, a sedan with five seats, after obtaining government approval for its operation in China. This move towards electric car production is part of Xiaomi’s future strategy.
The company aims to enter the electric cars sector, utilizing its new system (HyperOS) to connect its products, including smartphones and electric cars. Xiaomi expects to start producing electric cars in the first half of 2024, marking a significant step towards diversifying its activities.
Although Xiaomi achieves minimal profit margins from smartphone and home appliance sales, it looks forward to venturing into crowded sectors such as electric cars. This strategic move reflects long-term thinking and readiness for the substantial investments required for this leap.
Xiaomi Achieves Sales Growth for the First Time