Xiaomi had a strong performance in 2019 in terms of revenue but the same cannot be said for the Chinese tech company in 2020. This is because of the increased competition in global markets as well as the COVID-19 pandemic.
Xiaomi’s revenue grew 17.7% to over CNY200 billion ($28.2 billion) in 2019 with net profit surging 35% to CNY11.53 billion, thanks to the increased number of shipments of different products such as handsets, TVs, and IoT devices. Xiaomi shipped 12.8 million TVs last year and its IoT business alone contributed CNY62.1 billion to its total revenue.
Apart from shipping over 100 million units of handsets a year, Xiaomi also claims to have shipped 230 million IoT devices. But its total revenue in 2019 was only one-sixth of Huawei, which is one of its biggest rivals both domestically and internationally. As per industry observers, this data clearly suggests Xiaomi has to work hard to increase its profitability in 2020 and beyond.
Above all, Xiaomi is facing intense competition in its home country China from companies like Oppo, Vivo, and Huawei as they have too ventured into IoT business. Additionally, the company’s business in India, Spain, France, and Italy will be affected severely due to the ongoing COVID-19 pandemic, even though its shipments in the above-mentioned European nations increased over 60%.
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(Source)
