Xiaomi is having a dream run in recent times. The Chinese company which is currently the leading smartphone brand in India has reported a revenue of approximately $6.6 billion, representing an increase of 68.3% year-on-year. Xiaomi, moments ago, revealed the results for the quarter ending June 30 marked the first set of quarterly earnings report for Xiaomi since its $4.7 billion initial public offering in Hong Kong in July. Xiaomi reported such an increase in revenue driven by the strong smartphones sales in price-sensitive markets such as India.
The group’s international revenue grew 151.7% year-on-year, accounting for 36.3% of its total revenue, according to unaudited consolidated results for the company’s second quarter.
“Xiaomi will continue building on its unique and powerful ‘triathlon’ business model to further penetrate the high-end smartphone market, introduce more IoT (Internet of Things) products to international markets, and expand our range of Internet services, laying strong foundations for our revenue growth in the future ahead,” Xiaomi Founder, Chairman and CEO Lei Jun said in a statement.
In the second quarter of 2018, Xiaomi’s smartphones segment recorded revenue of approximately $4.46 billion, representing year-on-year growth of 58.7%, which was driven by an increase in both smartphone sales volume and the average selling price (ASP). The fastest growth in revenue was seen in the IoT and lifestyle products segment, growing by 104.3% year-on-year.
Revenue from the Internet services segment grew 63.6% year-on-year driven primarily by increasing monetisation in mainland China, Xiaomi said.
Earlier this year, Xiaomi made a bold move as it set a profit margin on hardware devices of just 5% and Xiaomi is following the same. Xiaomi is known for its aggressive prices on smartphones and other hardware devices. The Chinese brand is now enjoying tremendous success with the two Android One devices- Xiaomi Mi A2 and Mi A2 Lite, which it launched in over 50 countries. Also, Xiaomi created a new sub-brand called Poco by Xiaomi (in India), Pocophone by Xiaomi (in global markets) to launch affordable flagship devices. With the Poco sub-brand, Xiaomi is also reportedly eying to enter the US market officially.