Xiaomi’s growth continues to be robust
China’s value-for-money smartphone vendor Xiaomi (XIACF) fared quite well during the fourth quarter of 2018 despite the slowing smartphone market (especially domestically).
The company generated 44.4 billion Chinese yuan ($6.6 billion) in revenue during the quarter, a 26.5% increase from the same quarter in the previous year. The company, which lists its stock on the Hang Seng Index, reported a net profit of 1.82 billion yuan ($276 million), as it’s been investing big in expanding its core business as well as in future technology.
While Xiaomi’s shipments in China are shrinking, it’s seeing robust growth internationally, especially in India, Indonesia, and Europe. According to Xiaomi, its total revenue from outside China rose 118.1% YoY (year-over-year) during the fourth quarter of 2018, and it now accounts for as much as 40% of its total revenue compared to 28% in the fourth quarter of 2017.
Xiaomi is seeing tremendous growth outside China
Xiaomi is expanding rapidly in Europe, but more crucially, it’s now the market leader in India, the fastest-growing major smartphone market.
While Xiaomi has been diversifying its business, smartphones still made up 65.1% of the company’s total revenue in the fourth quarter. It said that it sold 118.7 million smartphones last year, growing 30% from 2017’s shipments—a pretty incredible feat considering that global smartphone shipments decreased in that timeframe.
Xiaomi has often referred to itself as an Internet company. However, its Internet Service segment, which includes its advertising business, is still its smallest segment. The segment represented only 9.1% of the company’s total revenue in the fourth quarter, but its revenue rose 61% YoY.