Xiaomi Rides Increase in Smartphone Demand to Post 21.4 Percent Rise in Q4 Revenue

“In 2021 we skilled a really complicated scenario,” Xiaomi president Wang Xiang mentioned in an earnings name.

“Provide is in a really extreme or tight place, and there’s a geopolitical impression. Nonetheless, Xiaomi’s efficiency has proven we’re a resilient firm.”

Income rose to CNY 85.58 billion (roughly Rs. 1,02,341 crore) within the quarter ended December 31, in contrast with CNY 70.46 billion (roughly Rs. 84,259 crore) within the yr precedent days and analyst expectations for CNY 81.80 billion (roughly Rs. 97,826 crore), based on Refinitiv information.

Smartphone shipments rose 4.4 p.c to 44.1 million items within the quarter, Xiaomi mentioned in an announcement.

Internet revenue rose 39.6 p.c to CNY 4.47 billion (roughly Rs. 5,345 crore), additionally above analyst expectations.

In an earnings name, Wang mentioned that guaranteeing a gentle provide of chips was nonetheless difficult within the first quarter of 2022, however anticipated the scenario to enhance by June.

The corporate, which will get the overwhelming majority of its income from promoting cell handsets, mentioned smartphone income rose 18.4 p.c to CNY 50.5 billion (roughly Rs. 60,393 crore) within the quarter ended December 31.

Final yr, Xiaomi grabbed market share in its residence market China away from Huawei, which misplaced its smartphone momentum after the USA positioned export restrictions on its suppliers. However Huawei spinoff Honor got here again robust within the second half of 2021, ending the fourth quarter with a 16 p.c market share in China — the identical as Xiaomi — based on information from Canalys.

Xiaomi’s fourth-quarter smartphone shipments in China rose 10 p.c, based on analysis agency Canalys. Globally, its shipments rose 5 p.c.

Slowing handset demand in China, the corporate’s largest market, has prompted Xiaomi to search for new alternatives.

The corporate is slated to take a position $10 billion (roughly Rs. 76,193 crore) over the following ten years into making electrical vehicles, which it hopes to carry to market by 2024.

The corporate has additionally ramped up investments in chips, releasing its first system with a self-developed picture sign processor.

Wang mentioned that investments in chips would go into areas “instantly associated to person expertise,” reminiscent of quick charging.

Xiaomi has additionally expanded its brick-and-mortar retail footprint, in hopes of attracting extra clients.

Xiaomi reported a 33.5 p.c rise in 2021 income, which hit CNY 328.3 billion (roughly Rs. 3,92,696 crore), versus a median analyst estimate of CNY 325.862 billion (roughly Rs. 3,89,720 crore).

© Thomson Reuters 2022

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