Much to the delight of Xiaomi, its fourth-quarter net profit has skyrocketed to a whopping CNY 1.85 billion, which roughly converts to about $275.59 million. The Chinese tech behemoth made the revelation on Tuesday.


The aforesaid profit surpasses the average estimate of ten analysts by exceeding CNY 1.7 billion, Refinitiv data revealed. During this period, the revenue upheaved an impressive 27 percent to CNY 44.4 billion.

According to Refinitiv data, this figure is lower than CNY 47.4 billion, which is the amount estimated by thirteen analysts. If the results are anything to go by, Xiaomi is rising above the decelerated Chinese market by leaving no stone unturned in a bid to have a firm grip in the Indian and European markets.

Xiaomi accumulated earnings of CNY 174.9 billion for the entire 2018 calendar year. The company’s net profit came up to CNY 8.6 billion. Since its Initial public offering (IPO) in Hong Kong, this is the third set of financial results for the renowned handset maker.

Xiaomi’s shares have surged about 30 percent after experiencing a dip earlier this year. Regrettably, they still haven’t reached their July listing price.

Related: Xiaomi’s Mi Universal Remote is now available in China for 79 Yuan ($12)

Xiaomi’s increasing focus in the European market can be attributed to its declining performance in China. Since its debut back in 2018, the company has managed to grab the fourth spot as the largest phone vendor in the continent.

Sales from outside the home market comprised 40 percent of Xiaomi’s earnings in the fourth quarter last year, Xiaomi CFO Shou Zi Chew told reporters while speaking on a call. He also pointed out that the company would be focusing more on global expansion in 2019.

“We will continue to explore the global markets and replicate the success in India in other key markets such as Indonesia and Western Europe,” Shou Zi Chew confirmed. He also revealed that they intend to capture unexplored international markets this year.

In order to boost its profit margins, Xiaomi introduced a slew of steeply-priced devices. Keeping in line with that, Xiaomi fans now have to pay 17 percent more to buy the company’s phone in China. The earnings report also shows that Xiaomi has increased the overseas selling price of their phones by a considerable 10 percent.

During the Mi 9 launch event, Xiaomi’s founder Lei Jun noted that the company will no longer manufacture handsets carrying price tags under CNY 3,000. In the fourth quarter, smartphone sales provided 65.1 percent of the company’s overall revenue. Cash flow from a slew of other hardware generated 25.1 percent and internet services made up 9.1 percent.

Xiaomi played its ace card i.e. the latter segment while pitching to investors in the initiation to its IPO. Dubbed as a “triathlon business model,” the pitch enabled those who purchased smartphones to use revenue-generating apps and services that either supported advertisements or micropayments.

(Source: 1)