Chinese smartphone maker Xiaomi Corp reported first-quarter revenue growth of 55%, exceeding analyst expectations as it nabbed market share from one-time sector leader Huawei Technologies Co Ltd.
Xiaomi published its financial report on the three-month period that ends on March 31 2021, which shows growth across the board. The total revenue for the company was CNY 76.9 billion, up 54.7% compared to the same period last year, while the adjusted net profit went up to CNY 6.1 billion, a 163.8% increase over last year (note: this is a non-IFRS number).
Revenue rose to 76.88 billion yuan ($12 billion) in the quarter ended March 31, from 49.70 billion yuan a year earlier. Analysts expected revenue of 74.5 billion yen, according to Refinitiv data.
Adjusted net profit rose to 6.1 billion yuan, versus market estimates of 3.97 billion yuan.
Smartphones remain the backbone of the company, the 49.4 million units shipped accounted for CNY 51.5 billion of the revenue (up 69.8% YoY). 4 million of those phones cost CNY 3,000/€300 or more. The gross profit margin on smartphones was 12.9%.
Xiaomi’s overseas revenue increased 50.6% to CNY 37.4 billion.
Xiaomi’s share of the smartphone market in China increased 75% year-on-year in the quarter ended late March, according to research firm Canalys, as Huawei retreated from the market following U.S. trade restrictions that crimped its ability to source key components for its handsets.
Revenue from smartphone sales jumped 69.8% year-over-year to 51.5 billion yuan, while revenue from internet services increased 11.4% to 6.6 billion yuan.
Despite the revenue growth, Xiaomi and other electronics brands remain hampered by the global chip shortage.
A number of causes such as stockpiling, surging demand for personal computers during COVID-19, and mishaps at factories caused a range of hardware makers to scramble for semiconductors late last year.
Leading the smartphone market in 12 countries in Q1 2021
A Xiaomi official has just announced that the brand has managed to the lead the smartphone market in 12 different nations across the globe in the first quarter of this year. The news was shared recently on Weibo, a Chinese microblogging website.
As per a Weibo post from the brand’s President, Lu Weibing, the smartphone maker has managed to achieve the No 1 spot in 12 countries in Q1 2021. The senior executive even shared an image poster that showcased the Chinese tech giant’s achievement. Looking at this poster, the flags of the 12 different nations can be observed. This includes, Spain, Russia, Poland, Belarus, Ukraine, Croatia, Lithuania, Malaysia, India, Nepal, Myanmar, and Colombia.
Furthermore, the company also saw a growth in its market share in Europe, with its position rising to the secon dsport for the first time in the European smartphone market. The brand lead the eastern European market for two consecutive quarter, while the it came it continued to be the third largest OEM in the western European market. Athough, it managed to lead in Spain for the fifth consecutive quarter.
It is the number 1 smartphone brand in 12 countries and it is Top 5 in 62 countries. More specifically, it is number 1 in Russia (with a 32.1% market share), number 1 in Spain (35.1% share), number 2 in Italy, number 3 in Germany and France. Overall, Xiaomi is number 1 in Eastern Europe and number 3 in Western Europe.
It leads the important Indian market with a 28.3% market share. Also, it continues to grow in Latin America at an impressive pace (+161.7%) and is now the number 3 brand with a market share of 11.5%. It is also number 3 in the Middle East and number 4 in Africa (+191.0%).
Xiaomi Active Users
MIUI now boasts 425 million monthly active users (MAU) globally, up from 331 million a year ago (an increase of nearly one third).
According to Canalys data it is number 3 smartphone brand worldwide. Xiaomi is big in China too with 118.6 million monthly active users for MIUI and a 14.6% share of the smartphone market that earned it the number 4 spot.
Xiaomi has ventured into other fields in what it calls its “Smartphone × AIoT” strategy. It is the #1 smart TV brand in mainland China for the ninth straight quarter and is Top 5 globally with 2.6 million smart TVs shipped. There is a growing demand for large TVs in China and Xiaomi was well prepared to meet it – it was the number 1 brand in the 70+ inch segment with a 29.0% share (retail sales volume shot up 160% YoY).
Related to that are Xiaomi’s smart gadgets and Internet services. There are 351.1 million smart devices connected to Xiaomi’s AIoT platform (not counting smartphones or laptops). Its AI Assistant had 93.0 million MAU, the Mi Home app reached 49.2 million MAU. Its Internet TV services have 4.7 million paid subscribers (+8.2% YoY). Advertising revenue rose to CNY 3.9 billion (+46.3% YoY).
The company isn’t resting on its laurels and is increasing its investment in R&D. It spent CNY 3.0 billion in Q1, up from CNY 1.9 billion from last year’s report. The company will continue invest more into research and development going forward, as well as hiring talented engineers.
Still, on a call with investors, Xiaomi CFO Alain Lam said the company’s chip inventories remained at “healthy” levels and he did not expect a major impact on business this year, though the broader shortage may not end until mid-way through 2022.
Executives also added the company intends to double the number of offline retail stores it has in China, from roughly 5,000 at present to over 10,000.
In India, meanwhile, one of its key overseas markets, the company will invest more in online sales as the government imposes strict lockdowns due to a surge in COVID-19 cases.
This quarter, Xiaomi also announced it would formally begin producing electric cars, with a new division to be led by Xiaomi founder Lei Jun.
The U.S. government also removed the company from a blacklist that would have barred U.S.-based investors from owning shares in the company, reversing one of former U.S. President Donald Trump’s last maneuvers against China’s tech sector before he left office.