The Strategist

Xiaomi reaches record revenue growth in Q3

11/25/2020 - 02:38

Chinese technology corporation Xiaomi presented its third quarter financial statements. The company's revenue grew by 34.5% to 72.2 billion yuan ($11 billion).

This is the most significant quarterly growth in the company's revenue in the last two years. Xiaomi's adjusted net profit increased by 19% to 4.1 billion yuan ($623 million).

Xiaomi's good results were helped, among other things, by the problems of another Chinese company, Huawei, whose sales of smartphones outside China declined due to American sanctions and other measures against it. Xiaomi itself is actively pushing up sales outside of China: its overseas revenue grew by a record 52.1% over the quarter to 39.8 billion yuan ($6 billion). Sales of Xiaomi smartphones as a whole also increased significantly, by 47.5% to 47.6 billion yuan ($7.3 billion).

Earlier in October, research companies IDC and Canalys reported that by the end of the third quarter, Xiaomi for the first time reached the third place in the world in smartphone sales, overtaking Apple. 

According to China Merchants Securities analysts, Xiaomi will continue to increase its market share thanks to good demand for budget smartphones during the pandemic and Huawei's supply disruptions: "price-competitive Xiaomi products are attractive in an uncertain economic environment".