FILE PHOTO: The logo of Xiaomi is seen within the company and office in Bangalore, India, on January 18, 2018. REUTERS/Abhishek N. Chinnappa/File Photo GLOBAL BUSINESS WEEK AHEAD
SHANGHAI (Reuters) – the Chinese smartphone-maker Xiaomi Corp reported better-than-expected quarterly revenue on Monday, partly due to a steady growth in sales outside its home market.
The results indicate Xiaomi’s overseas expansion and focus on markets such as India and Europe are paying off as the smartphone market in China, the world’s largest, slows down.
Xiaomi sales rose by 27% percent in the quarter that ended in March from a year earlier to 43.8 billion yuan ($6.3 billion), beating an average estimate of 42.109 billion yuan in a survey of analysts polled by Refinitiv.
Xiaomi gets most of its revenue by selling mobile phones, but it also makes the money from the sale of online ads and other forms of consumer hardware – a approach described as a “triathlon” business model when it listed in Hong Kong in 2018. Adjusted net income for the first quarter increased to 2.1 billion yuan, compared with 1.7 billion a year ago.
According to the data of Counterpoint Research, the overall smartphone market in China, contracted by 7% year-on-year in the first quarter of 2019.
Xiaomi is the share of the domestic smartphone market shrank 21% over the period, the same study shows, while rivals Oppo, Vivo and Huawei each saw gains.
Xiaomi has tried to compensate for the slowdown at home by expanding abroad aggressively. It remains the leading phone vendor in India, and has steadily grown in Europe after the launch of across the continent in 2018.
Xiaomi has also attempted to move upmarket and increase the price of its flagship devices, while the transfers are cheaper models in the sub-brands.
Reporting by Josh Horwitz; Editing by David Goodman and Susan Fenton