Xiaomi has reported a 3.1 per cent revenue growth for the Quarter ending June generating $7.77 billion in revenue for the quarter up from the 7.7 per cent in the previous quarter. The slow growth rate is mostly due to the effects of the COVID-19.
In the period, the company made 28.3 million total shipments down from 29.2 million reported in Q1 2020.
Xiaomi says, “local production yields have been slow. The production capacity had not yet returned to the normal level, our sales were still limited by the production constraints,”
Smartphone revenues fell 1.2 per cent year-on-year to CNY 31.6 billion in Q2. This was offset by growth in other products, notably TVs, and revenues from the IoT and lifestyle products segment rose by 2.1 per cent to CNY 15.3 billion. While Internet services contributed CNY 5.9 billion in revenue, up 29.0 per cent from a year ago.
Its smartphone sales, which account for most of its revenue, has recovered in most of its international markets excluding India which still had lockdown restrictions until sometimes in June. The average daily number of overseas smartphone activations reached 120 per cent of the pre-pandemic level recorded in January 2020.
The growth however can be attributed to growth of smartphone shipments in parts of Europe.
according to research firm Canalys, Xiaomi’s smartphone shipments grew by 64.9% year-on-year in Europe, achieving a total market share of 16.8%.
In Western Europe, Xiaomi’s smartphone shipments grew 115.9% year-on-year, accounting for a 12.4% market share. Similarly,
Additionally, Xioami also took lead in smartphone shipments in Spain, second in France, and 4th in Germany and Italy which boosted its growth margins in the quarter.
Xiaomi also recorded 343.5 million monthly active users of its MI UI in Q2, up 23.3 per cent year-on-year.
The company reported a net profit for the quarter of CNY 4.49 billion, more than double the CNY 1.96 billion a year earlier. This is attributed to CNY 1.16 billion in disposal gains on Xiaomi’s portfolio of investments in over 300 companies.