Xiaomi Corp, the world’s 4th largest smartphone supplier, stated profit for the 2nd consecutive quarter in the 3 months ended September 30, helping allay concerns about China’s saturated mobile phone market and slowing economy.
The company on Monday posted a 3rd 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 robust smartphone shipments overseas and its growing internet of things (IoT) and lifestyle products segments.
The company’s revenue grew 49 percent to 50.8 billion yuan from 34 billion yuan a year ago.
According to Xiaomi chief financial officer Chew Shou Zi, the results are in line with internal expectations but exceed market expectations.
Xiaomi shipped 34.3 million smartphones last quarter for a global market share of 9.7 percent, which is a new high for the Beijing-based company, according to technology research firm IDC.
Xiaomi’s Hong Kong-traded shares, which had seen lethargic performance since the company’s initial public offering (IPO) in July, were up 5.1 percent to HK$13.60 at the close of trading on Monday.
International markets accounted for 43.9 percent, or 28.5 billion yuan, of total revenue last quarter, according to Xiaomi’s regulatory filing.
Smartphones, which made up 75.4 percent of total revenue, grew 69 percent to 34.9 billion yuan on the back of higher average selling prices, improved presence in the mid- to high-end handset segments, and increased shipments to western Europe and India.
IoT and lifestyle segments accounted for 16.7 percent, or 10.8 billion yuan, of total revenue on the back of higher smart TV and laptop computer sales.
The internet services business segment made up 7.5 percent, or 4.7 billion yuan, of total revenue because of greater advertising income.
Despite the growth recorded by all its business segments, Xiaomi’s Chew said currency volatility remained an issue. The fluctuations of the renminbi and the Indian rupee’s exchange rate against the US dollar have affected the company a lot, as renminbi depreciated 6.9 percent and rupee depreciated by 14.2 percent. A great deal of company’s revenue came in renminbi and rupee.