Xiaomi reports second straight profitable quarter on smartphone, IoT and lifestyle products boost
- Beijing-based company enters into exclusive, 30-year global licensing deal with smartphone and selfie app provider Meitu
Xiaomi Corp, the world’s fourth largest smartphone supplier, reported a profit for the second consecutive quarter in the three months ended September 30, helping allay concerns about China’s saturated mobile phone market and slowing economy.
The Beijing-based company on Monday posted a third-quarter net profit of 2.5 billion yuan (US$360 million), rebounding from a loss of 11 billion yuan in the same period last year, driven by strong smartphone shipments overseas and its growing internet of things (IoT) and lifestyle products segments.
Revenue grew 49 per cent to 50.8 billion yuan from 34 billion yuan a year ago.
“The results are in line with internal expectations, but exceed market expectations,” said Xiaomi chief financial officer Chew Shou Zi in a conference call after the market close in Hong Kong.
The upbeat earnings report marked a solid result for Xiaomi’s sharpened focus on international markets, where it aims to derive more than half of its annual revenue. Xiaomi shipped 34.3 million smartphones last quarter for a global market share of 9.7 per cent, which is a new high for the company, according to technology research firm IDC.