Xiaomi Expects Smartphone Recovery

Xiaomi posted better-than-expected performance on the smartphone market in the second quarter of 2020, despite challenges of COVID-19. The company said that revenue from the smartphone segment reached CNY31.6 billion ($4.6 billion) down slightly from CNY32 billion in the same period last year, while smartphone shipments reached 28.3 million. Revenue hit CNY53.5 billion, up 3.1%, boosted by TV shipments and a growing advertising business. Net profit fell 7.2 per cent to CNY3.4 billion.

Xiaomi pointed to smartphone figures from Canalys, which placed it at fourth spot globally in terms of shipments, with a market share of 10.1%. The company noted shipments of its premium-oriented smartphones, with a retail price of more than €300, in overseas markets increased 99.2%. Europe was a particular sweet spot, with shipments growing 64.9 per cent, offsetting a decline in India.

The company also said its smartphone average selling price increased 11.8%, driven by a higher proportion of mid- to high-tier sales. In particular, the company put its success down to the Mi10, Mi10 Pro and Mi 10 Ultra, stating sales exceeded CNY400 million after ten minutes of its debut. It added the pandemic impacted its global operations to varying degrees, particularly in April and May, with sales greatly affected. “As business restrictions were gradually lifted, sales have recovered tangibly,“ the company said.