Xiaomi beats analysts' forecasts, registers 13.6% growth in Q1 2020 revenue

Ruben Fields
May 22, 2020

Xiaomi Corp reported a 13.6 percent rise in first-quarter revenue on Wednesday, beating estimates even as demand for its smartphones plunged amid the coronavirus pandemic that has also rattled supply chains in China.

"Our production in mainland China has largely resumed, and smartphone demand has rebounded quickly", the company said in its first-quarter earnings release.

In Latin America and Africa, the company said smartphone shipments in the first quarter grew 236% and 285% year on year respectively, although it only entered those markets in 2019.

Xiaomi said the number of devices connected to its IoT platform has reached 252 million in the first quarter, marking a 42.6% increase compared to the same period a year ago.

Xiaomi founder and CEO Lei Jun attends a product launch event in Beijing previous year. Learn more about day trading in the stock market.

Sales in the first quarter rose to 7 billion dollars, comfortably ahead of analyst forecasts. Apple's iPhone shipments in China, however, climbed from 0.5 million in February to 2.5 million in March.

Xiaomi Founder, Chairman and CEO Mr. Lei Jun said, "Although the industry is facing severe challenges, the Group still experienced growth in all segments despite the market downturn, which fully reflects the flexibility, resilience and competitiveness of Xiaomi's business model".

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The company's bottom line fell to CNY 2.2 billion from CNY 3.2 billion, due to foreign exchange losses and lower gains on investments.

Meanwhile domestic rival Huawei faces mounting USA restrictions over allegations - all strongly denied - that it's a risk to national security.

Xiaomi makes most of its money on handsets, but also sells online ads and other types of hardware.

"Huawei's decline in overseas markets provides more opportunities for Xiaomi and other Chinese vendors", said Linda Sui, director of wireless smartphone strategies at Strategy Analytics.

But more significantly Xiaomi has grown by 58.3 per cent in Europe, according to Canalys numbers. In comparison, smartphone sales at large were down 18% in China in the first quarter.

In March, the smartphone maker had announced that signs of recovery are already showing in the sales data as the outbreak started to get under control in China.

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