INSUBCONTINENT EXCLUSIVE:
Chinese smartphone firm Xiaomi has posted a $2.1 billion profit for its first quarter of business as a public company on account of growing
smartphone and hardware sales.
The firm listed in Hong Kong in Julyin an IPO that raised $4.7 billion, but Xiaomi share price has steadily
The company announced today that it grew revenue 68 percent in Q2 2018 to reach 45.2 billion RMB, or $6.6 billion.Xiaomi posted a net profit
of 14.6 billion RMB ($2.1 billion), but it recorded an operating loss of 7.6 billion RMB ($1.1 billion) for the period due to significant
administration costs around the listing
Costs had also weighed it down in the lead up to the IPO.
Those initial results raise the firm shares by 1.6 percent at the time of writing
But it remains some way from theHK$21.55peak reached last month.
The bulk of Xiaomi revenue is from smartphone sales and the firm said it
shipped 32 million during the quarter, up 44 percent year-on-year, which brought in 30.5 billion RMB ($4.5 billion)
That 67 percent of all revenue, although it is worth noting that gross profit on hardware sales slipped to 6.7 percent from 8.7 percent last
year.
Beyond phones,sales of other smart products, which includes TV and fitness bands, grew by over 100 percent to reach 10.4 million RMB
That around $1.5 billion and Xiaomi next largest revenue source.
Internet services, a segment that Xiaomi has long forecast as a financial
differentiator against other phone brands, saw total sales grow by 64 percent annually to hit 4 million RMB, $585 million
Xiaomi has only recently begun to focus this division on markets outside of China, which accounts for the bulk of its 206.9 million monthly
That a figure that Xiaomi said it up on 146 million one year ago.
Look more broadly at its globalization strategy, 36 percent of Xiaomi
revenue for the quarter came from outside of China, which the firm said represents 151 percent year growth year-on-year
That predominantly from India, but Xiaomin said it has seen progress in Indonesia, Southeast Asia largest economy, while it also recently
expanded into Europe.
In India, the firm is shooting for additional growth after it released the first device from its new Pocophone
The Poco F1 is designed to offer high-end specs at just a snip of the cost, zooming in on a market segment that fellow Chinese outfit
OnePlus has seen much success within in India.
Xiaomi POCO F1:& Qualcomm Snapdragon 845,& LiquidCool cooling system,& up to 8GB RAM and
256GB UFS 2.1 storage, and 4000mAh battery
pic.twitter.com/m8ue9UiVnr
mdash; leijun (@leijun) August 22, 2018
The F1 is priced below $500 and it&ll debut in India before going on
sale in Hong Kong, France and Indonesia later this month.
