Xiaomi reported its financials for the second quarter of 2019 earlier today. The smartphone maker, listed last year, posted slower growth in the last quarter, with Huawei grabbing a significant chunk of market share in China in the past few months.
Xiaomi posted 15% revenue growth in Q2 2019 which is slower than what was estimated by analysts. The company’s revenue rose to 51.95 billion yuan ($7.36 billion) from 45.24 billion yuan during the same period last year. In comparison, Xiaomi’s revenue grew by a solid 27% in the first quarter of the year.
The company is facing tough times with the Chinese smartphone market being in a slump and Huawei growing pretty significantly in the domestic market. Ever since the ban was enforced by the US government on Huawei, Chinese customers have come in support of the telecommunications giant. IDC reports that Huawei and its Honor brand increased its market share in China in Q2 2019 to 37% from 27.4% last year. This increase came at the expense of other manufacturers like Xiaomi who saw a fall in its shipments.
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Xiaomi’s net income fell by a staggering 87% to 1.96 billion yuan. However, the company still managed to post a decent 3.64 billion yuan adjusted profit. The total shipments in the last quarter were 32 million.
Xiaomi’s CFO also revealed that the company has been making strategic investments to build a “Chinese supply chain” most likely in response to the US’ stance against Chinese companies. In this regard, the company has already invested in companies such as Verisilicon and Bestechnic who design chips for smartphones and audio devices respectively.
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(Via)
