The Strategist

Xiaomi profit falls short of forecasts in Q2

08/21/2019 - 10:42

Profit of the Chinese electronics manufacturer Xiaomi Corp did not satisfy expectations in the second quarter of 2019 amid weak demand for smartphones in the face of a slowdown in the PRC economy.

Jon Russell
Jon Russell
According to a press release of the company, its profit in April-June fell to 1.96 billion yuan ($ 278 million) from 14.63 billion yuan in the same quarter last year. Analysts polled by Bloomberg expected around 2.64 billion yuan.

Xiaomi's revenue grew by 15% to 51.95 billion yuan in the last quarter, with a forecast of 52.17 billion yuan.

Smartphone sales increased by only 5%, to 32 billion yuan. In the segment of connected devices, revenue jumped 44% to 14.9 billion yuan. Sales of Internet services increased by 15.7% to 4.6 billion yuan, while advertising revenue decreased by 0.6% to 2.5 billion yuan due to the weak Chinese market.

Xiaomi was founded in 2010. The company produces smartphones, tablets, laptops, televisions, smart watches and smart bicycles, as well as double boiler and water testers.

Xiaomi shares rose 3.2% on Tuesday. Since the beginning of the year, the company's capitalization has fallen by 27%, to 219.03 billion yuan.