With the industry starting to recover, Xiaomi, a Chinese company, announced a 10.9% increase in revenue for the fourth quarter and exceeded projections for adjusted net profit thanks to robust smartphone sales.
According to LSEG data, revenue for the October–December quarter increased to 73.24 billion yuan ($10.17 billion) as opposed to the 73.17 billion analysts had predicted.
During an earnings call, Xiaomi President Lu Weibing stated, "As previously expected, the overall smartphone shipments in the second half of 2023 were better than the first half."
"The global consumer electronics market continues to show a gradual recovery trend."
Adjusted net profit for the company increased 236.1% to 4.9 billion yuan, exceeding analysts' projected profit of 3.89 billion.
The smartphone market has been improving after a protracted period of stagnation.
According to data from researcher Canalys, Xiaomi's global smartphone shipments in the fourth quarter increased 23% from the same period last year to 40.7 million units, placing it third internationally with a 13% market share.
Its shipments increased by 12% to 9.5 million handsets in China, its biggest market, placing it fifth with a 13% market share.
The debut of Xiaomi's high-end Mi 14 series, which sold more over a million phones in its first week of availability in October, helped the company gain momentum.
Xiaomi has diversified its operations beyond its primary smartphone sector, despite the market becoming more and more saturated. It has also been used in electric automobiles, a plan initially announced in 2021. It is well-known in China for home appliances.
Xiaomi plans to open its first 59 stores in 29 locations this month and start delivering its first cars to customers in China. Market observers anticipate finding out the price at a launch ceremony on March 28.
The president of Xiaomi, Lu, stated on the results call that the business wants to finish third in the market for battery-powered luxury sedans. He did not elaborate on Xiaomi's strategies for accomplishing this.
Xiaomi's entry into the electric vehicle market, which CEO and founder Lei Jun refers to as his "last big entrepreneurial endeavour," coincides with fierce price rivalry in China.
The company has teamed up with a division of state-owned manufacturer BAIC to build an EV facility in Beijing that can build 200,000 vehicles a year.
Lei stated that Xiaomi invested 10 billion yuan in the vehicle's development and promised to invest an additional $10 billion in the automotive industry over the next ten years.
According to Xiaomi's earnings report, costs related to its electric vehicle business and other initiatives drove a 19.2% increase in research and development expenses for the full year 2023, totaling 19.1 billion yuan.
(Source:www.nasdaq.com)
According to LSEG data, revenue for the October–December quarter increased to 73.24 billion yuan ($10.17 billion) as opposed to the 73.17 billion analysts had predicted.
During an earnings call, Xiaomi President Lu Weibing stated, "As previously expected, the overall smartphone shipments in the second half of 2023 were better than the first half."
"The global consumer electronics market continues to show a gradual recovery trend."
Adjusted net profit for the company increased 236.1% to 4.9 billion yuan, exceeding analysts' projected profit of 3.89 billion.
The smartphone market has been improving after a protracted period of stagnation.
According to data from researcher Canalys, Xiaomi's global smartphone shipments in the fourth quarter increased 23% from the same period last year to 40.7 million units, placing it third internationally with a 13% market share.
Its shipments increased by 12% to 9.5 million handsets in China, its biggest market, placing it fifth with a 13% market share.
The debut of Xiaomi's high-end Mi 14 series, which sold more over a million phones in its first week of availability in October, helped the company gain momentum.
Xiaomi has diversified its operations beyond its primary smartphone sector, despite the market becoming more and more saturated. It has also been used in electric automobiles, a plan initially announced in 2021. It is well-known in China for home appliances.
Xiaomi plans to open its first 59 stores in 29 locations this month and start delivering its first cars to customers in China. Market observers anticipate finding out the price at a launch ceremony on March 28.
The president of Xiaomi, Lu, stated on the results call that the business wants to finish third in the market for battery-powered luxury sedans. He did not elaborate on Xiaomi's strategies for accomplishing this.
Xiaomi's entry into the electric vehicle market, which CEO and founder Lei Jun refers to as his "last big entrepreneurial endeavour," coincides with fierce price rivalry in China.
The company has teamed up with a division of state-owned manufacturer BAIC to build an EV facility in Beijing that can build 200,000 vehicles a year.
Lei stated that Xiaomi invested 10 billion yuan in the vehicle's development and promised to invest an additional $10 billion in the automotive industry over the next ten years.
According to Xiaomi's earnings report, costs related to its electric vehicle business and other initiatives drove a 19.2% increase in research and development expenses for the full year 2023, totaling 19.1 billion yuan.
(Source:www.nasdaq.com)
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