Chinese phone maker Xiaomi has reported a more than anticipated 21.4 percent increase in the fourth quarter’s revenues, as production of handsets is slowly moving up in response to an escalating shortage of chips in the world and the high for the pandemic.
Smartphone sales increased 4.5 percent in the quarter to 44.1 million units in the first quarter of this year, Xiaomi has said in a statement. Revenue climbed by 13.45 billion dollars in the quarter ended December. Net income increased 39.6 percent in the range of 4.47 billion yuan. This was over analysts’ expectations. In an earnings conference.
Its business, which earns the majority of its income from the sale of smartphones, reported that the revenue from smartphones grew 18.4 percent to 7.94 billion dollars in the quarter ended December 31.
Xiaomi’s fourth-quarter smartphone sales in China were up 10 percent, according to the research firm Canalys. Globally, the company’s shipments increased by 5percent.
In the past, Xiaomi grabbed market share in its home market of China in a way that was not possible for Huawei which lost smartphone popularity following it was discovered that the United States placed export restrictions on suppliers. However, Huawei spinoff Honor returned to its best in the second quarter of 2021. The company ended the fourth quarter with 16 percent of the market in China which is the same as Xiaomi according to the data of Canalys.
Xiaomi has increased investment in chips and has relaunched its first device which has an image signal processor that was developed by the company itself. The company plans for a $10 billion investment over the course of 10 years to develop electric vehicles that it hopes to introduce to the market in 2024. Xiaomi is also expanding its brick-and-mortar retail location in hopes of attracting even more customers.