The Strategist

Xiaomi reports 164% profit growth

05/27/2021 - 04:00

Chinese technology corporation Xiaomi has presented data on financial results in the first quarter of this year. As follows from these data, the corporation's net profit for the reporting period amounted to 6.07 billion yuan ($949 million), which is higher than experts' expectations.

Jon Russell via flickr
Jon Russell via flickr
Experts of Bloomberg forecasted net profit in the amount of 5.3 billion yuan. Compared with last year's figures, the net profit increased by 163.8 percent. The company's revenue was 76.9 billion yuan ($12.03 billion) with an increase of 54.7%. This was also higher than analysts' expectations, who expected revenue of ¥74.7 billion.

The good quarterly performance, experts say, is due to the fact that Xiaomi, the third-largest smartphone maker in the world, has narrowed the gap in terms of smartphone shipments from rivals Samsung and Apple. 

Xiaomi shipped 48.6 million smartphones worldwide in the first quarter of this year, up 64.8 percent from the same period last year, and the fastest growth rate among the top five smartphone makers, IDC said. According to Bloomberg, smartphone sales account for about 60% of the corporation's revenue.

At the same time, the corporation announced that the US District Court for the District of Columbia has issued a final order striking down the company's definition as a "Communist Chinese military company". The revocation of this status means that all restrictions on the ability of U.S. citizens to purchase or own Xiaomi securities have been lifted.