Xiaomi Corp. reported revenue growth for the first time in almost two years.
The mentioned result is long-awaited for the specified Chinese manufacturer of smartphones, laptops, and many other devices. Currently, this company, according to some experts, is in a position of aggressive attack on its competitors in the home market, releasing models of higher-end mobile phones.
According to the results of the third quarter of this year, Xiaomi’s revenue was recorded at the level of 70.9 billion yuan ($9.9 billion). This figure exceeds the expectations of analysts who predicted revenue of 70.5 billion yuan. The company’s net profit for the third quarter was fixed at 4.9 billion yuan. Experts predicted that this figure would amount to 4.3 billion yuan.
The Chinese manufacturer, according to media reports, expects that in the fourth quarter of this year, the volume of global shipments of mobile phones will show significant growth. At the same time, experts forecast that according to the results of 2023, the total sales of the mentioned products of Xiaomi and its competitors will decrease by about 5% year-on-year. The management of the Chinese company believes that next year the supply of smartphones will recover.
Xiaomi is gradually recovering from a recession that lasted several years, at a time when global consumer demand for mobile phones and other electronics is showing a decline. Experts suggest that the launch of the Xiaomi 14 flagship smartphone line may stimulate the growth of buyer activity during the holidays in China, despite the situation of uncertainty in the consumer sector of the economy of this country.
Currently, some experts are talking about signs of a gradual recovery of the global mobile phone market.
In October, sales of Xiaomi and Huawei smartphones in China increased by 11% year-on-year. These indicators are less than the rates of purchasing activity that were recorded in the Asian country before the coronavirus pandemic. In this case, the main driver of growth is the new Huawei Mate 60 Pro smartphone, which has become a kind of sensation.
Investors expect Xiaomi to be one of the main beneficiaries of any positive change in the mobile phone market. The market value of the company has grown by about $19 billion after the minimum recorded in June. In part, the current investor sentiment regarding Xiaomi’s prospects is based on the expectation that this brand will launch the production of electric vehicles in the first half of next year, which will become a new direction of its activities.
The company sold more than a million of its 14-series smartphones in the first week of October. This was announced by Xiaomi Chairman of the Board Lei Jun in a publication on Weibo.
The latest HyperOS operating system of the Chinese manufacturer combines the company’s products from smartphones to televisions within a single functional space. This platform based on Android can also link existing devices with an electric car.
Xiaomi currently has intentions to make a move into the crowded space, but it takes time and money. To achieve the mentioned goal, the company limits marketing expenses.
As we have reported earlier, Xiaomi and Huawei Lead China Phone Market.