Xiaomi Rides Increase in Smartphone Demand to Post 21.4 Percent Rise in Q4 Revenue

Smartphone shipments rose 4.4 percent to 44.1 million units in the quarter, Xiaomi said.

By Reuters | Updated: 23 March 2022 12:03 IST

Xiaomi Rides Increase in Smartphone Demand to Post 21.4 Percent Rise in Q4 Revenue

Last year, Xiaomi grabbed market share in its home market China away from Huawei

Highlights

Xiaomi gets the vast majority of its revenue from selling smartphones
Xiaomi's fourth-quarter smartphone shipments in China rose 10 percent
Xiaomi has also expanded its brick-and-mortar retail footprint

"In 2021 we experienced a very complex situation," Xiaomi president Wang Xiang said in an earnings call.

"Supply is in a very severe or tight position, and there is a geopolitical impact. However, Xiaomi's performance has shown we are a resilient company."

Revenue rose to CNY 85.58 billion (roughly Rs. 1,02,341 crore) in the quarter ended December 31, compared with CNY 70.46 billion (roughly Rs. 84,259 crore) in the year earlier period and analyst expectations for CNY 81.80 billion (roughly Rs. 97,826 crore), according to Refinitiv data.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

Smartphone shipments rose 4.4 percent to 44.1 million units in the quarter, Xiaomi said in a statement.

Net income rose 39.6 percent to CNY 4.47 billion (roughly Rs. 5,345 crore), also above analyst expectations.

In an earnings call, Wang said that ensuring a steady supply of chips was still challenging in the first quarter of 2022, but expected the situation to improve by June.

Xiaomi 12 Lite 5G Tipped to Be in Testing in Europe and Asia: All Details

The company, which gets the vast majority of its revenue from selling mobile handsets, said smartphone revenue rose 18.4 percent to CNY 50.5 billion (roughly Rs. 60,393 crore) in the quarter ended December 31.

Last year, Xiaomi grabbed market share in its home market China away from Huawei, which lost its smartphone momentum after the United States placed export restrictions on its suppliers. But Huawei spinoff Honor came back strong in the second half of 2021, finishing the fourth quarter with a 16 percent market share in China — the same as Xiaomi — according to data from Canalys.

Xiaomi's fourth-quarter smartphone shipments in China rose 10 percent, according to research firm Canalys. Globally, its shipments rose 5 percent.

Redmi 10 Prime+ 5G Spotted on BIS, May be a Rebranded Redmi Note 11E

Slowing handset demand in China, the company's largest market, has prompted Xiaomi to look for new opportunities.

The company is slated to invest $10 billion (roughly Rs. 76,193 crore) over the next ten years into making electric cars, which it hopes to bring to market by 2024.

The company has also ramped up investments in chips, releasing its first device with a self-developed image signal processor.

Redmi Max 100-inch 4K TV with 120Hz Refresh Rate Launched: All Details

Wang said that investments in chips would go into areas "directly related to user experience," such as fast charging.

Xiaomi has also expanded its brick-and-mortar retail footprint, in hopes of attracting more customers.

Xiaomi reported a 33.5 percent rise in 2021 revenue, which hit CNY 328.3 billion (roughly Rs. 3,92,696 crore), versus an average analyst estimate of CNY 325.862 billion (roughly Rs. 3,89,720 crore).

Redmi K50 Pro, Redmi K50 With Liquid Cooling, 120Hz Displays Launched

Xiaomi India speaks exclusively to Orbital, the Gadgets 360 podcast, on their plans for 2022 and pushing for 120W fast charging with the 11i HyperCharge. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.