Tech giant Xiaomi reports 13.6% revenue growth in Q1

Tech giant Xiaomi reports 13.6% revenue growth in Q1”

"Lockdown measures are being relaxed in many European and Asia-Pacific countries. At this point, we have become a truly worldwide company", Wang Xiang, President and Acting Chief Financial Officer of Xiaomi said in the earnings call.

Xiaomi's stock initially rose as much as 3.6% in Hong Kong in Thursday morning trade as investors applauded the relatively strong first-quarter performance despite the pandemic.

In times of uncertainty of this magnitude, Xiaomi reports that it managed to beat analysts' forecasts, and has registered a 13.6% growth in revenue over Q1 2020. The company's latest average selling price of 1,038 yuan reflects Xiaomi's roots in the lower end of the market. Xiaomi said its overseas revenues in the first quarter reached RMB 24.8 billion, jumping 47.8% year on year and accounting for more than half of the company's total revenues for the period. The gains come as global smartphone shipments saw an 11.7% drop in the first quarter due to supply chain and logistics disruptions caused by the Covid-19 pandemic. The company's adjusted net profit for the first quarter also grew 10.6% compared to RMB 2.3 billion in the same period a year ago, exceeding the Bloomberg consensus estimate of RMB 2.13 billion. Its AI assistant also saw its MAU surge 54.9% year on year to 70.5 million in March.

"Although the industry is facing severe challenges, the group still experienced growth in all segments despite the market downturn", said Lei Jun, Xiaomi founder, chairman and CEO. 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.

More news: G-7 leaders cautious as Trump suggests face-to-face summit

Like Chinese rivals, that has Xiaomi looking to overseas markets for growth. "We will see Huawei become more aggressive in Chinese domestic market". 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.

The company also reported double-digit growth in monthly active users of MIUI, Xiaomi's home-grown Android-based operating system, and its Mi Home App. The recorded numbers are even better than internal and analyst estimates.

Its total revenue in the January-March period totaled 49.7 billion yuan (about 7 billion US dollars), the Beijing-headquartered company announced Wednesday in its quarterly financial report.

Like this



22 May 2020
Google will longer build AI tools for oil and gas extraction
Google will no longer develop new artificial intelligence tools to help oil and gas companies extract crude, the company announced Tuesday.

22 May 2020
Wearing surgical masks significantly reduces COVID-19 spread, hamster tests show
A team of experts in Hong Kong recently tested the effectiveness of masks on hamsters, and the findings are promising. The wide-scale use of face masks is the simplest and most effective step we can take towards ensuring public health.

22 May 2020
Distillate Demand Down by 7% Over Year: IEA
In 2020, the IEA forecasts net additions of renewable electricity capacity to decline by 13 per cent compared with 2019. None of the forecasts could anticipate the coronavirus pandemic and the extent of its impact on the world.

22 May 2020
Lady Gaga Admits She Was 'Too Ashamed' To Be Ariana Grande's Friend
In a detailed interview with Zane Lowe for Apple Music, Gaga spoke candidly about how she was ashamed to strike a friendship with Ariana .

22 May 2020
India central bank pledges more easing as economy set to shrink
One of the four measures taken to mitigate the impact of COVID-19 is improving the functioning of markets and market participants. Governor Das said that India's gross domestic product (GDP ) will see contraction and may well be in negative territory in FY21.

22 May 2020
Pakistan International Airlines' Airbus A320 Crashes Near Karachi
The airline's chairman resigned in late 2016, less than a week after the crash of an ATR-42 aircraft killed 47 people. The passengers remained safe in the accident, but the plane suffered considerable damage, it added.

22 May 2020
UK track-and-trace up soon, despite issues: minister
The app, vital to helping to get Britain out of lockdown, is now being trialled on the Isle of Wight, off England's South Coast. To achieve this we must have national, local and cross-agency involvement.

22 May 2020
Coronavirus: Sweden records highest weekly deaths per capita in Europe
This tactic was initially criticized by Swedish researchers as having little support for the attempt to create herd immunity. Former state epidemiologist Annika Linde says in hindsight, Sweden probably should have instituted a lockdown after all.

22 May 2020
'It's our happy hour': State to allow 50 people into pubs
NSW Treasurer Dominic Perrottet said the move would return "thousands" of jobs back to NSW. He said patrons should be "washing your hands like you've never done before".

22 May 2020
Netflix Will Start Automatically Canceling Inactive Accounts
The company said that it has already factored these inactive "a few hundred thousand" accounts into its financial guidance. If you're wondering why they're making this move, it's simply a goodwill thing according to Wu.