Xiaomi's Q3 net income rises 180% YoY on cost-cutting measures
Xiaomi on Monday announced a whopping 183% year-on-year (YoY) surge in its third-quarter net income, reaching 6 billion yuan (Rs. 7,140 crore) to exceed expectations. The company's revenue also surpassed predictions, with sales totaling 70.9 billion yuan (Rs. 82,412 crore). Xiaomi President Lu Weibing credited the growth to reduced component expenses and operational efficiencies, stating that "the achievements we were still able to make demonstrate an improvement in our overall capabilities."
Flat device shipments outperform the wider market
Although Xiaomi's YoY shipment numbers remained steady at 91 lakh devices in China for the latest quarter, the company managed to outpace its competitors as overall industry sales declined by 5%, as reported by market research firm Canalys. Factors such as the COVID-19 pandemic and a sluggish economy have contributed to a decrease in demand within the world's largest smartphone market, causing consumers to postpone phone upgrades.
Signs of recovery and focus on EV division
Signs of a rebound in the smartphone market have emerged, with Xiaomi selling over 10 lakh units of its newest flagship smartphone within just one week of its release. Moreover, investors are keeping a close eye on developments in Xiaomi's electric vehicle (EV) division. A subsidiary of Beijing-based automaker BAIC Group recently sought regulatory approval to produce two EV models under the Xiaomi brand, indicating that manufacturing could begin shortly.
Mass production of vehicles by H1 2024
During an earnings call, Weibing reiterated the company's objective to start mass-producing vehicles by the first half of 2024. He also emphasized ongoing investment in the automotive sector, with the number of car-related research and development staff reaching 3,000 by the end of September. This progress highlights Xiaomi's dedication to broadening its footprint in the EV market and diversifying its product lineup.
