Xiaomi launches its UPI payments app, Mi Pay, in India

Joanna Estrada
March 21, 2019

The results are the company's third since it floated on the Hong Kong Stock Exchange last July, but investors were not as enamoured as might be expected, with shares falling by 5 per cent.

Profits rose from 550 million Yuan (£62.1m) to 1.9 billion Yuan (£214m) during the quarter, beating estimates of 1.7 billion Yuan.

Xiaomi is cutting its dependence on China, where the economy in 2018 expanded the least in almost three decades. It got about 60 percent of its total revenue a year ago from China compared to 72 percent in 2017. They have rallied almost 30 percent since early January but the stock remains well below its July listing price.

"I think that has probably caught people by surprise". Worldwide revenues grew by a whopping 118.1% year-to-year reaching 70 billion yuan ($10.43 billion) or 40% of total revenue. Yesterday the company released its yearly earnings report and the numbers show a steady increase in all sectors, most notably a 52.6% year-to-year increase in revenue reaching 174.9 billion yuan ($26.06 billion). After broadly rolling out in the continent in early 2018, the company now ranks as the region's fourth-largest phone vendor.

This fund infusion comes at a time when Samsung has upped its smartphone strategy in India by forsaking profit margin in multiple new smartphones in a desperate attempt to win back leadership. And the executive confirmed that Xiaomi will expand to more global markets in 2019.

Two industry executives said that the company may use the two funds to enter the large appliance market, such as water purifiers, washing machines, laptops, and refrigerators, as well as the expansion of the company's Mi Home retail store, thus maintaining Xiaomi in the leading position in the Indian smartphone market.

The company's overall smartphone average selling price a year ago was about $143. For comparison, Apple's was $793 in its first fiscal quarter of 2019.

In the fourth quarter, smartphone sales provided 65.1 percent of the company's overall revenue. And with CEO Lei Jun reportedly saying that the price of its smartphones could increase in the near future, it seems like Xiaomi has plenty of headroom before hitting the five percent cap. Cash flow from a slew of other hardware generated 25.1 percent and internet services made up 9.1 percent.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER