As Xiaomi launches its latest phone in Europe, the Mi 9T Pro, strong sales in overseas markets are said to be a major factor in the Chinese company's stellar second-quarter financial results. A year-on-year increase in adjusted net profit of 71.7% to has been reported, up to RMB 1.96 billion in Q2 2019.
According to a new blog post, "consensus-beating" performance in the smartphone and AIoT sectors led an efficient and resilient operation that achieved a 20.2% increase in revenue to RMB 95.71 billion for the first half of 2019 compared against the same period last year. Overseas revenue made up more than 40% of that, showing the positive impact entering into various European markets over the past year have had on the company's bottom line. Even though phone prices are inching higher and higher, Xiaomi has still managed to increase sales volume — that's no mean feat in view of the struggles other major tech brands are facing. Separating Redmi into a seemingly separate brand may also have proven to be a wise mood.
To highlight the fine performance even further, Xiaomi became the youngest Fortune Global 500 company earlier in the year. It's come a long way in a short time — even though its products are still heavily influenced by Apple, Xiaomi isn't the blatant ripoff merchant it once was. Both its software and hardware offerings are steadily improving with each major phone launch, while the range of affordable smart home devices it offers is also looking ever more impressive. You can take a look at the full report at the link below.
Revenue growth still slowing, despite Xiaomi's brave face
While Xiaomi is obviously keen to present its financials in as positive a light as possible, a report by Reuters suggests all is not as rosy as it seems. Despite "consensus-beating" profits reported by the Chinese company, it failed to highlight that the quarter represents its slowest revenue growth since it went public a year ago. It also lost market share to Huawei back at home even though its sales figured surged overseas.
At the start of the month, David wrote that Xiaomi's stock had fallen by around 50% over the past year, and hardly in a better state now. After these most recent financial results, its share price was down a further 6%. So while adjusted profit figures are looking good for Xiaomi, they don't tell the whole story. The company is betting big with investments in semiconductors, AI, and IoT, and will hope to turn around its stock losses with a strong second half of 2019.