Xiaomi reports strong fourth quarter revenue

China’s Xiaomi declared a 10.9% climb in fourth-quarter earnings and beat revised net profit estimates raised by solid smartphone sales as the sector shows signs of healing.

In the October-December quarter, Xiaomi reported revenue of 73.24 billion yuan ($10.17 billion), slightly exceeding analyst expectations of 73.17 billion yuan, according to LSEG data.

Positive Outlook on Smartphone Shipments

Xiaomi President Lu Weibing noted on an earnings call that smartphone shipments in the second half of 2023 surpassed expectations, indicating a positive trend in the global consumer electronics market.

Impressive Profit Growth

The company’s adjusted net profit soared by 236.1% to 4.9 billion yuan, outperforming analyst estimates of 3.89 billion yuan.

Recovery in the Smartphone Industry

After a prolonged period of stagnation, the smartphone industry is witnessing signs of recovery. Xiaomi’s global smartphone shipments in the fourth quarter surged by 23% year-on-year to 40.7 million units, securing the third position globally with a 13% market share, according to Canalys data.

Diversification Efforts

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Acknowledging market saturation, Xiaomi has diversified its business beyond smartphones. Its foray into electric vehicles (EVs), announced in 2021, is a notable move. The company aims to commence deliveries of its first vehicles in China this month, with an unveiling event scheduled for March 28.

Focus on EV Market

During the earnings call, President Lu expressed Xiaomi’s ambition to establish a prominent position in the battery-powered luxury sedan segment, although specific strategies were not disclosed.