Xiaomi has announced its results on Monday for the third quarter ended September. Due to the accelerated sales in Europe and India, Xiaomi succeeded to beat analysts’ expectations for the net profit.
Comparing to 1.92 billion yuan estimates of analysts, Xiaomi stands high at 2.48 billion ($357.23 million) of profit whereas it was a loss of 11 billion for the same period last year.
Xiaomi for the last quarter, after rising at the rate of 49.1 percent, generated revenue of 50.85 billion yuan and its operating profit remained 3.59 billion yuan after sinking at the rate of 38.4 percent.
Xiaomi showed these mixed results for the third quarter even after reducing sales rates of smartphones in China and overseas. Xiaomi as well as its rivals Vivo and Oppo, from the first half of this year, has become successful in getting recognition in smartphone markets across the globe.
Xiaomi remained top seller of smartphone in China and now India is another rapidly growing market of Xiaomi. Xiaomi, with its budgeted smartphone Redmi, got success not only in India but it also helped Xiaomi to enter European markets with the introduction of Redmi in Spain and Russia in year 2017. The release of Xiaomi’s flagship device, Mi 8 Pro earlier this month in Britian, is another step forward in European market.
Addition of more new brands to its portfolio is the Xiaomi’s strategy to capture the niche market. For selling smartphones under its brand, Xiaomi is also partnering with a popular photo app Meitu. Also Xiaomi has launched two new models earlier this year; for targeting gamers it launched Black Shark and to provide value for money device aiming Indian market it launched Poco.
In future, Xiaomi is also aiming for its transformation as software maker from its current status of smart phone maker.
In third quarter smartphone division of Xiaomi added 64.6 percent towards total sales whereas 9.3 percent was the share of its internet services towards Xiaomi’s total sales.