Chiese’ Apple competitor, Xiaomi announced a 13.6 percent growth in the first quarter (Q1) revenue on Wednesday, exceeding expectations
The first few months into 2020 was rather a successful one for the Chinese-based mobile maker who reportedly sold more phones and added significant profit from the launch of its high-end 55G netwG device.
Recording this achievement was despite the impact of the coronavirus, which rattled supply chains and dampened total demand for smartphones, the company managed to boost sales.
“Our production in mainland China has largely resumed, and smartphone demand has rebounded quickly,” the company mentioned.
Xiaomi ‘s confidence compares with competitors like Apple and Samsung, all of which have warned of a difficult year ahead.
Sales rose to $7 billion in the first quarter of 2020 from $6.2 billion in the same preceding year period, beating analyst expectations of $6.7 billion.
The company attributed the jump to rising prices in China for its just released 5 G phones, as well as growing sales abroad.Profits fell by about one third because of a decline in the value of Xiaomi ‘s investments in other companies. By selling online ads and other types of consumer hardware, the company gets most of its revenue from selling mobile handsets, but also makes money.
Over the past few years Xiaomi has faced intense competition from bigger domestic rival Huawei in China. Also, China’s domestic smartphone sector has declined and has concentrated on overseas expansion to counter this Xiaomi and other smaller Chinese rivals.
Xiaomi’s first-quarter shipments to Chinese consumers dropped more than a quarter from a year earlier, market research firm Canalys said, compared to an 18 percent drop in smartphone sales in the country.
After weeks of lockout to stop the coronavirus epidemic, the firm said in March it was seeing signs of revenue recovery in China.