Xiaomi sees slowest growth since listing on fewer sales, Huawei competition

Yolanda Curtis
August 21, 2019

The company, which has set up production facilities in India, said it has "maintained a strong growth" abroad and booked RMB 38.6 billion overseas revenue for the first six months of 2019.

Its revenue in the January-June period totaled 95.7 billion yuan (13.6 billion USA dollars), the Beijing-headquartered company announced Tuesday in its H1 financial results. The total shipments in the last quarter were 32 million. Adjusted net profits came out to CNY 5.72 billion ($810.36 million) which is a 49.8% year on year increase.

A Mi 8 phone sits on display in a Xiaomi store in Shanghai on March 22, 2019.

Confronted with fierce competition in the domestic market, Xiaomi is exploring new ways to grab more market share.

In the same period previous year, the IoT and lifestyle products segment only provided 23% of the company's total revenue. "Looking ahead, we will continue to strengthen our R&D and investment to capture the great opportunities brought by 5G and AIoT markets", said Lei Jun, founder, chairman and CEO of Xiaomi.

Xiaomi said it plans to launch a second 5G smartphone later this year in China.

Xiaomi's stock has lost more than a quarter of its value so far this year.

The company's internet business, meanwhile, upped its revenue for the quarter by 15.7% year-on-year to nearly 4.6 billion yuan.

As of 30 June 2019, the number of connected IoT devices, excluding smartphones and laptops, on Xiaomi's IoT platform reached approximately 196 million units, a year-on-year increase of 69.5%.

Outside of the smartphone business, Xiaomis TV line also proved to be a big success as the company ranked first in China with 5.4 million units for the period and is now a top-five TV manufacturer on the global stage. Advertising and gaming from smartphones continue to the main form of revenue for Xiaomi's internet business however.

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