earnings report, U.S. government blacklist, Get

A Xiaomi store in Hong Kong on May 25. Photo: VCG

Tech giant Xiaomi Corp. reported surging first quarter revenue and profit growth on the back of increased global smartphone sales as ailing heavyweight Huawei Technologies Co. Ltd. continues to relinquish market share.

Xiaomi’s total revenue grew 54.7% year-on-year to 76.9 billion yuan ($12 billion) in the three months through March, about two-thirds of which was from smartphone sales that were up nearly 70%, according to its latest earnings report released Wednesday. The company reported adjusted first quarter net profit of 6.1 billion yuan, up 163.8%.

Beijing-based Xiaomi said that its global smartphone shipments rose 69.1% in the first quarter to 49.4 million units, giving it a worldwide market share of 14.1% and consolidating its position as the world’s third-largest smartphone vendor, according to data from research firm Canalys.

The strong performance was achieved despite hardware manufacturers having to deal with a global chip supply shortage and against the backdrop of Huawei retreating as a result of U.S. sanctions that limited its ability to source key components for its handsets.

The results came days after a U.S. court put the final nail in the coffin of a Trump administration order that placed the company on a U.S. government blacklist, formally lifting restrictions on U.S. investors buying or holding the phonemaker’s securities.

Xiaomi stepped up efforts in the first quarter to go upmarket, with releases of a series of high-margin premium models such as the Mi 11 Ultra and the Mi Mix Fold. According to its financial report, the company grew its China market share for smartphones priced between 4,000 yuan and 6,000 yuan to 16.1% in the first quarter from 5.5% a year ago.

Xiaomi also recorded impressive growth in some of its overseas smartphone markets, including Europe and Latin America. In Europe, for example, it shot to second place for the first time in the first quarter after shipments ballooned 85.1%, according to Canalys.

“We managed to achieve very fast growth for the smartphone business with an increased gross profit,” Xiaomi President Wang Xiang said during a conference call. He also expressed confidence in Xiaomi’s ability to maintain healthy future smartphone business growth thanks to good ties with chip suppliers, including Qualcomm and MediaTek.

While smartphones contributed the largest share of revenue, in second place were the company’s internet-of-things (IoT) and lifestyle products, which include smart TVs, laptops and floor-cleaning robots. Xiaomi made 18.2 billion yuan from this business segment in the first quarter, accounting for about 24% of revenue. The third-largest revenue source was the internet services segment, which generated revenue of 6.6 billion yuan.

Xiaomi has joined the ranks of tech giants such as Baidu and Huawei to tap into the already crowded electric-car market as part of efforts to diversify its revenue base. In March, it unveiled plans to set up a new smart car division with initial investment of 10 billion yuan.

Wang described Xiaomi’s intelligent car manufacturing push as an inevitable result of the company’s longstanding efforts to expand its IoT ecosystem, and hinted the company may launch its first car within two or three years.

Contact reporter Ding Yi (yiding@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)

Get our weekly free Must-Read newsletter.

TECH NEWS RELATED

Xiaomi Smart Band 7 Pro Price in Malaysia & Specs

The Xiaomi Smart Band 7 Pro has a 1.64-inch AMOLED Touch Display display. It supports Bluetooth. It features 235mAh, Charging type : magnetic charging, running on Android 6.0 or higher, iOS 12 or higher. The latest Xiaomi Smart Band 7 Pro price in Malaysia market starts from RM279. It ...

View more: Xiaomi Smart Band 7 Pro Price in Malaysia & Specs

Xiaomi Civi 2 Price in Malaysia & Specs

The Xiaomi Civi 2 is powered by a Qualcomm Snapdragon 7 Gen 1 (4 nm) CPU processor with 128GB 8GB RAM, 256GB 8GB RAM, 256GB 12GB RAM, UFS 2.2. The device also has a 6.55-inch AMOLED (1080 x 2400 pixels, 402 ppi) display. It has a Triple: 50 MP, ...

View more: Xiaomi Civi 2 Price in Malaysia & Specs

Redmi Pad Malaysia release: Available for purchase starting today, prices from RM899

Besides launching the Xiaomi 12T series in Malaysia yesterday, Xiaomi also released its latest tablet offering, the Redmi Pad in our country. Available for purchase at Authorised Xiaomi Stores and other retailers in Malaysia as well as online at Xiaomi’s official stores on Lazada and Shopee, the Redmi Pad ...

View more: Redmi Pad Malaysia release: Available for purchase starting today, prices from RM899

Redmi Pad First Sale Today: Price in India, Launch Offers, Specifications and More

The Redmi Pad buyers will be able to avail 2 months of YouTube Premium as a freebie.

View more: Redmi Pad First Sale Today: Price in India, Launch Offers, Specifications and More

Xiaomi Band 7 Pro Officially Drops in Europe for Less than $100: Is the Budget Smartwatch Worth It?

Xiaomi finally launched the Band 7 Pro to Europe and other regions for just less than $100. With a lot of smartwatches in the market, very rarely does one sell for less than $100. Xiaomi Band 7 Pro Smartwatch is Among the Xiaomi Budget-Friendly Products Xiaomi has been known ...

View more: Xiaomi Band 7 Pro Officially Drops in Europe for Less than $100: Is the Budget Smartwatch Worth It?

Redmi Pad Price in Malaysia & Specs

The Redmi Pad is powered by a MediaTek Helio G99 (6nm) CPU processor with 4GB RAM, 128GB ROM. The device also has a 10.61-inch IPS LCD (1200 x 2000 pixels, 220 ppi) display. It has a 8MP rear camera and supports Wifi, Bluetooth and GPS. It packs in a ...

View more: Redmi Pad Price in Malaysia & Specs

Xiaomi Band 7 Pro launched in Europe at 99 euros

Back in July, Xiaomi officially launched the Xiaomi Band 7 Pro in China. Today, the company officially launched this device in Europe and other regions. For the first time in the series, the Xiaomi Band 7 Pro adopts a large square screen. The display has a 70% ratio and supports an ...

View more: Xiaomi Band 7 Pro launched in Europe at 99 euros

Hands on: Xiaomi 12T review

The best phone for gamers on a budget?

View more: Hands on: Xiaomi 12T review

Redmi Pad Review: All Hail The New King of Affordable Tablets

Xiaomi 12T series Malaysia release: SD 8+ Gen 1 SoC, 120W fast charge, and 200MP camera, starts from RM1,999

Xiaomi’s latest flagship has a 200-megapixel sensor — so don’t think spec race is over

Hands on: Xiaomi 12T Pro review

Xiaomi 12T series Malaysia release: SD 8+ Gen 1 SoC, 120W fast charge, and 200MP camera

Xiaomi 12T Pro with 200MP Camera, Xiaomi 12T with 108MP Camera Launched: Price, Availability

Xiaomi Smart Band 7 Pro with Built-in GPS, AMOLED Display, and 110+ Sports Modes Launched Globally: Price, Features

Xiaomi 12T and 12T Pro price-performance balancing act comes to Singapore

Xiaomi’s first-ever wet dry vacuum cleaner series leads its AIoT launch

Redmi Pad launched in India with 2K display, MediaTek Helio G99 SoC, 8,000 mAh battery

Xiaomi’s new phone has a 200MP camera — and its photos are stunning

Xiaomi 12T vs Xiaomi 12T Pro: What are the differences?

OTHER TECH NEWS

Top Car News Car News