Smartphone maker Xiaomi’s second-quarter revenue grew a record 64 percent from a year earlier, it said on Wednesday, announcing the purchase of a self-driving startup as it prepares to expand into the competitive market.
Sales reached CNY 87.8 billion (about INR 1.00.720 million), up from 53.54 billion a year earlier and exceeding analyst expectations of CNY 84.53 billion (about INR 96.900 million).
Net income reached CNY 6.32 billion (about INR 7,240 crores), an increase of 87.4% year-on-year and above analysts’ expectations.
US government sanctions against Xiaomi’s rival Huawei effectively hurt the tech giant’s smartphone division and allowed Xiaomi, along with Chinese Android makers Oppo and Vivo, to increase their market shares.
Xiaomi’s share of the global smartphone market grew 83 percent year-over-year in the quarter ended in June, according to research firm Canalys. It sold 52.8 million phones, becoming the second best-selling brand in the world for the first time in its history, behind Samsung and ahead of Apple.
In the domestic market, however, the company is still behind Oppo and Vivo in terms of gross unit shipments.
On Wednesday, Xiaomi also announced that it is acquiring self-directed startup Deepmotion for approximately $77.37 million (about INR 575 crores), in an attempt to boost its own R&D efforts in the field, said the president of company, Wang Xiang.
In March, Xiaomi announced that it would spend $10 billion (about INR 74,260 crores) to enter the electric vehicle sector. The company has yet to formally announce any partnerships or plans for its first model, although public posts on job search sites show the company is aggressively recruiting talent.
Last week, Reuters reported that China Evergrande Group was in talks to sell its EV unit to Xiaomi. Xiaomi said it has already contacted several automakers, but has not yet decided which one to work with.
The company earns most of its revenue from selling mobile devices, but it also makes money from selling online ads and other types of consumer hardware.
Growth in Xiaomi’s Internet services unit, which makes money primarily from placing ads in multiple apps, grew 19.1% year-over-year.
© Thomson Reuters 2021