Xiaomi posts 87 per cent quarterly profit decline amid global smartphone market slowdown
- The Beijing-based company shipped 32.1 million smartphones worldwide in the second quarter, but lost market share in China
Xiaomi Corp, the world’s fourth largest smartphone supplier, on Tuesday reported an 87 per cent drop in net profit in the quarter ended June 30, as the global smartphone market continued to slow down.
The Beijing-based company’s net profit for the second quarter fell to 2 billion yuan (US$284 million), down from 14.6 billion yuan a year earlier. Total revenue grew 15 per cent to 51.9 billion yuan, up from 45.2 billion yuan a year ago, driven by an increase in the average selling price of the company’s smartphones.
Despite the industry slowdown, Xiaomi founder, chairman and chief executive Lei Jun said the company was gearing up for potential major growth opportunities.
“Looking ahead, we will continue to strengthen our research and development capabilities and investments”, especially in the areas of 5G, artificial intelligence and the Internet of Things, he said in a statement on Tuesday.
The company, whose shares were up 3.17 per cent to close at HK$9.43 in Hong Kong on Tuesday, has so far invested in more than 270 companies, with an aggregate book value of 28.7 billion yuan.
Lei also indicated the inroads being made by the company in its overseas operations. “Thanks to Xiaomi’s relentless efforts, we have managed to achieve solid growth in our businesses,” he said.