Chinese smartphone maker Xiaomi Inc. reported second-quarter revenue surged 68%, as strong smartphone sales complemented a jump in revenue at its smaller, but fast-growing connected devices business.
Xiaomi, whose cheap smartphones have become very popular in price-conscious countries such as India, said on Wednesday its revenue from overseas markets more than doubled from the year-earlier period.
This is the first set of results released by Xiaomi since it raised $4.72 billion in a high-profile IPO in June, valuing the firm at about $54 billion, almost half of industry’s earlier estimates of $100 billion. The going has not been smooth for Xiaomi as a listed company, however. Its Hong Kong-listed shares have slumped by about a fifth from their peak a month ago on concerns about Xiaomi’s valuation and trading accessibility for mainland Chinese investors.
May assuage concerns
The results are likely to assuage concerns about the company’s operations.
Revenue for the three months ended June 30 rose to 45.2 billion yuan ($6.58 billion) from 26.9 billion yuan, the company said in a statement. It posted a net profit of 14.63 billion yuan compared to a net loss of 11.97 billion yuan in the year-earlier period.
International revenue was 16.4 billion yuan, accounting for 36.3% of total revenue. Sales of Internet-connected devices, including smart TVs, also grew rapidly.
Poco for ‘premium’ seekers
With its eyes on the premium smartphone market in India, Xiaomi unveiled sub-brand Poco that will compete with high-end devices from the stables of OnePlus, Apple and Samsung.
Poco — which introduced its maiden smartphone ‘F1’ priced at ₹20,999 onwards — will use the manufacturing and supply chain as well as the after-sales network of the Chinese parent.
