China-based Xiaomi has today shared the financial report for the first quarter of 2019 and reported adjusted net profit growth by 22.4 percent year-over-year compared to 2.1 billion yuan (approximately $300 million).
It also reported that its total revenue climbed 27.2 percent to 43.8 billion yuan (approximately $6.33 billion). The biggest source of revenue for the company continues to be the smartphone business.
Xiaomi is currently dominating the smartphone market in India and is also doing well in a few other countries outside of its home market China. International markets generated over 38 percent of its total revenue over the first quarter, representing a 35 percent increase. Xiaomi’s overseas momentum came amid a global slowdown in the sector.
As per the report from Canalys, Xiaomi was the world’s fourth-largest smartphone maker by units shipped in the first quarter. Further, the company’s “IoT and lifestyle” unit, which has a wide range of home appliances saw its share of revenue jump from 22.4 percent to 27.5 percent year-over-year.
The company says that the growth of this segment was primarily driven by smart TV sales, a new area of focus for the company. In January, Xiaomi had announced taking a 0.48% stake in TV manufacturer TCL. This deepens an existing alliance under which Xiaomi’s operating system was integrated into TCL products.
Till March-end, the company reported that it owned 261 million monthly active users through its MIUI operating system installed across all devices, which represent a 37.3 percent growth YoY. The number of IoT devices, excluding smartphones and laptops, have jumped 70 percent to reach approximately 171.0 million units.
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Xiaomi is working very hard to grow its software and internet services segment but the strategy so far hasn’t been much effective as it accounted for 9.7 percent of the company’s total revenue, compared to 9.1 percent a year before. The company has said that it won’t make more than 5 percent profit from the hardware business, so it makes sense for Xiaomi to focus more on software and internet services.
