Xiaomi’s Recorded Revenue Increase of 13.6% in Q1 2020 Despite COVID-19
The first quarter of 2020 has passed and, similarly, tech firms’ financial results are coming in, though some are slower than others. Xiaomi has released solid numbers for Q1 2020 despite having a difficult market situation and expects even better results for the future.
Overcoming all projections, Xiaomi’s sales rose by 13.6 percent compared to CNY’s 49.7 billion last year. The gross profit margin also saw a significant boost to CNY 7.56 billion (44.9 percent increase), given this year’s increased research and development expenses.
Smartphones generated revenue of CNY 30,3 billion, 60 percent of the total. Global smartphone shipments from the company grew to 29.2 million units, which was just a small improvement compared to the first quarter of last year. Xiaomi currently ranks 4th among the top 5 smartphone manufacturers with an 11.11 percent market share.
Xiaomi says its dual-brand approach has been a great success, with good returns from both its main smartphone brands (Xiaomi and Redmi). In the first quarter, the flagship duo Mi 10 and Mi 10 Pro was sold more than 1 million times, while the mid-range star, the Redmi Note 8 Pro, was one of its best-selling phones in Q1.
As for 5 G phones, the study reveals that Xiaomi in China reached a market penetration rate of 25.9 percent. Overall, the average selling price rose year-on-year by 7.2 percent, which indicates Xiaomi ‘s smartphones have been well received.
Also well-performed Xiaomi ‘s IoT products, gadgets, and lifestyle products. The department generated revenue of CNY 13.0 billion, up 7.8 percent from last year. Xiaomi currently boasts the world’s biggest IoT network with over 252 million connected devices (excluding smartphones and laptops).
It was also the first time half the company’s profits came from the foreign market. Europe was the largest contributor to trade, with regions like Africa, the Middle East, Latin America, and others exhibiting strong demand growth.
As the lockdowns and quarantines in China, Europe, and other regions are relaxed, Xiaomi expects even better results for the future.