Chinese technology company Xiaomi, known mainly for making smartphones ?? but with product lines in IoT devices, Internet services and TVs, too ?? recorded some jumpy domestic gains in Q4 to the detriment of Huawei.
With its main rival in the forced withdrawal from the smartphone market, due to US-led sanctions over its supply chain, Xiaomi has managed to achieve healthy year-on-year jumps for both revenue and adjusted net profit.
Turnover for the quarter was RMB 70.5 billion (USD 10.8 billion), which is almost 25% more than in Q4 2019. Adjusted net profit, of RMB 3.2 billion (USD 490 million), jumped by 36 , 7% in the same period.
Smartphone touch points
Xiaomi’s smartphone revenue during Q4 was RMB 42.6 billion ($ 6.5 billion), up a whopping 38.4% from last year.
Tailwinds mostly came from mainland China, where Xiaomi managed to gain market share in a booming market.
Citing data from market research firm Canalys, Q4 smartphone shipments rose a record 51.9% from last year in China, the highest growth rate among major rivals (Apple, Samsung and, of course, Huawei).
The result was that Xiaomi expanded its domestic share from 9.2% in Q4 2019 to 14.6%.
Global smartphone shipments, with strong growth in China, complemented by significant penetrations into Western Europe and Latin America, reached 42.3 million units during Q4 2020. This is a jump of almost 30% compared to Q4 2019.
Again, using Canalys as its market research firm, Xiaomi said it “continued to take third place” globally in terms of smartphone shipments ?? behind Apple and Samsung ?? with a market share of 12.1% during Q4.
The chips fell?
What has been good at working with smartphones in the last few quarters may not necessarily continue, at least with the same high growth rates.
“The lack of chips will become a big challenge this and next year,” Xiaomi President Wang Xiang said in a call with analysts, as reported by Bloomberg. “We’re working with partners to have a better supply situation.”
However, he added that he is “optimistic” that Xiaomi has been on the path to growth this year, despite the lack of components.
?? Ken Wieland, associate editor, specifically for Light Reading