Xiaomi posted 34 percent increase in third quarter revenue
31. December 2020Xiaomi Corporation, a Chinese smartphone manufacturer, recently announced its latest financial results. Revenue in the third quarter of 2020 was around $11 billion, up 34 percent year-on-year and also the highest revenue growth in two years. However, Xiaomi President Wang Xiang expressed concerns of supply chain shortages for the industry as a whole. Despite this challenge, he said he was still confident that his company would end the year with satisfactory results.
According to analysts, Xiaomi smartphone sales increased due to a decision by the U.S. government to restrict the trade and import of products from rival Huawei Technologies. This was also confirmed by Xiang Ligang, chairman of the Information Consumption Alliance, a telecommunications industry association. According to the China Daily newspaper, U.S. chipmaker Qualcomm Inc. received permission to supply certain products to Huawei’s Chinese sites. Therefore, with Huawei continuing to produce 4G smartphones, Xiaomi expects to face strong competition in overseas markets such as Eastern Europe, Russia, the Middle East and Africa in the coming year, where 4G cell phones continue to be in demand.
Xiaomi said it shipped 46.6 million devices from July to September, up 45.3 percent from the same period last year. Among those, more than half of the third-quarter sales were generated in Europe. Growth in that market was 52.1 percent, with revenue totaling $6 billion. Xiaomi’s adjusted net income in the third quarter was $627 million, above expectations of $504 million. It is worth noting that Xiaomi’s business in Internet services such as music and video streaming grew only 8.7 percent compared to 29 percent a year earlier. Electronic devices such as smartphones may only be imported into China, sold in China and used in business activities in China after the product has undergone CCC certification.
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