Xiaomi Revenue Growth Bumps in Q2

Xiaomi Revenue Growth Bumps in Q2

Xiaomi Revenue Growth Bumps in Q2- In the second quarter of 2019, Xiaomi reported a further slowdown in sales growth. The major reasons for this bump being the depressed smartphone market and feebler Chinese economy. A little year-on-year change was witnessed in the smartphone shipment with sale of 32.1 million units. The total revenue of Xiaomi reached 14.5 percent due to higher prices and growth in other devices and services.

Xiaomi Revenue Growth Bumps in Q2

Out of the total revenue of CNY 51.95 billion in the quarter, smartphone revenue made up only 61.6 percent with a rise of just 5.0 percent. This was only made possible due to the 5 percent increase in the average selling price to CNY 998.7 (USD 141.4).
As compared to smartphone revenues, revenues from other products showed much better performance. These revenues reached CNY 14.94 billion with 44 percent percent year-on-year increase. The increase was driven by the demand for its smart TVs, air conditioners, and newer devices like the Mi Band and Mi Electric Scooter. According to Xiaomi, said it shipped 2.7 million TVs in the quarter, up 41 percent, and the new Mi Band sold over 1 million units within eight days of launch in June whereas, internet services contributed CNY 4.58 billion in revenue in the quarter.
Xiaomi’s revenue increased 33 percent in markets outside China. It accounted for around 42 percent of Xiaomi’s revenues and grew by 33.1 percent year-on-year to CNY 21.9 billion.
Overall, the company’s net profit dropped down to CNY 1.96 billion from CNY 14.63 billion in Q2 2018.

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