Xiaomi’s revenue surged past expectations after a global recovery boosted orders at the Chinese smartphone maker.
Sales rose 27 per cent to 75.51 billion yuan (S$14.07 billion) in the March quarter, versus the average of analyst estimates of 73.5 billion yuan. It was the Beijing-based company’s fastest quarterly growth in more than two years. Net income was 4.18 billion yuan, compared with the average estimate of 4.07 billion yuan.
Smartphone unit shipments at Xiaomi grew by nearly 34 per cent last quarter amid a broader market recovery, narrowing the gap between it market leaders Samsung Electronics and Apple, according to market tracker IDC’s data. Apple’s global iPhone shipments slid more than expected as sales flagged in China.
Under billionaire co-founder Lei Jun, Xiaomi made a foray into the crowded electric car market in late March in a bid to lower reliance on smartphones. As of the end of April, orders for Xiaomi’s first electric sedan SU7 series neared 90,000, with 10,000 cars delivered as of mid-May.
The company is also developing a sport utility vehicle similar to Tesla’s Model Y, aiming to launch sales as early as 2025, according to people familiar with the matter. The EV business may make up a mid-to-high single digit percentage of the company’s revenue in 2024, said Bloomberg Intelligence analysts Steven Tseng and Sean Chen. BLOOMBERG
