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Huawei’s market share is slumping in major markets and a market study shows that Xiaomi itself, and not anyone else, will benefit the most from this. Now that benefit is being proved by the numbers in the company’s latest financial reports.
In its earnings report for the quarter ended December 2020, Xiaomi said profit jumped 36.7 percent year-on-year. That amounted to 3.2 billion yuan ($ 490.7 million) on revenue of 70.5 billion yuan ($ 10.8 billion) – a 25 percent increase over the same period last year.
Smartphone sales once again account for more than half of all Xiaomi sales. The brand has just seen an increase of 32% year-on-quarter in ex-factory sales, while Huawei’s sales have dropped dramatically by 40% year-on-year. Revenue from overseas markets also increased by 28% in the fourth quarter.
Xiaomi’s success not only comes from the world, even the Chinese market has witnessed the prosperity of this brand. Xiaomi’s smartphone market share in China increased 9.2% in the same period last year to 14.6%. In addition, the company is still the market leader in India, as well as holding the number one position in markets in Central and Eastern Europe for the first time.
Recently, the company also received another good news when a US court temporarily suspended an executive order from the Trump administration to limit US investments and the company due to suspicions related to the military. China.
However, Xiaomi’s success in the next few quarters may be difficult due to the lack of key components such as semiconductors and chips. “Chip shortages will become a major challenge this year and next.” Chairman Wang Xiang said. “We are working with our partners to get better sourcing.” Even so, the company remains optimistic for growth this year.
Refer to PhoneArena
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