Xiaomi revenue grows 13.6% in the first quarter of 2020

Yolanda Curtis
May 22, 2020

Xiaomi, the world's fourth largest smartphone vendor after Samsung, Apple and Huawei, is seeing increased importance from worldwide markets with revenue from Europe, India, Latin America and other overseas markets accounting for half of total revenue in the first quarter of 2020, the company said in a statement accompanying its March quarter financial results. With revenues of $830 million, a year-on-year increase of 38.6%, the division accounts for 11.6% of total revenues, up from 10.1% in Q4 2020 and 9.9% in Q3 2020. However, Xiaomi seems to have bent the rules, as sales for Q1 rose to 49.7 billion yuan ($7 billion), from 43.76 billion yuan in Q1 2019. 1810) said on Wednesday that its sales came in 13.6% higher in the first quarter.

Xiaomi brand smartphones captured market share of about 31% in India, its most important overseas market, and made inroads into European and Latin American markets, according to Wang.

"Our production in mainland China has largely resumed, and smartphone demand has rebounded quickly". Learn more about day trading in the stock market. Apple's iPhone shipments in China, however, climbed from 0.5 million in February to 2.5 million in March.

Xiaomi Corp said it will continue to tap into the growth potential of global markets after seeing smartphone shipments rebound to near pre-pandemic levels as countries around the world begin to relax lockdown measures.

In terms of quarterly profit, however, Xiaomi saw a roughly 33% decline in Q1 ascribed to the devaluation of its investments in other businesses. Mobile phones are the primary source of revenue for the technology company, but part of it is also generated from selling advertisements online and a range of other consumer hardware products. The biggest, Huawei, had enjoyed success before the impact of USA sanctions began to be felt, while Xiaomi has tapped into demand in developing markets like India and Latin America. Europe shows a similar picture, with the number of smartphone activations in the market in the third week of May back to over 90 percent of the weekly average in January, according to the company. In comparison, smartphone sales at large were down 18% in China in the first quarter.

In March, the company said it was seeing signs of a sales recovery in China after weeks of lockdown to stem the coronavirus outbreak.

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