Xiaomi Flags Fastest Growth In Years As Huawei Fails To Keep Up
Xiaomi has posted its fastest revenue growth in two years with a 34.5% jump in sales for the September quarter, nabbing market share from Huawei as it struggles against the tide of 5G bans.
The Chinese-owned smartphone giant reported $11 billion in sales, with over half of that figure stemming from sales outside of China.
Xiaomi has been focussing harder on Western Europe and Indian markets, which widened its lead against fellow Chinese brand Huawei.
Xiaomi has directly benefited from the Trump administration’s hard stance against Huawei. Global unit shipments jumped by 42% in the third quarter – its growth surpassing bigger brands from the likes of Samsung and Apple.
Meanwhile, Huawei’s volumes dropped by 22% over the same period.
The pandemic has seen a surge in demand for budget smartphones and Xiaomi has been a beneficiary of this shift in consumer habits.
“Xiaomi’s price-competitive products are attractive amid the economic uncertainties,” China Merchants Securities analysts Kevin Chen and Clint Su said of the report.
Xiaomi’s share prices have almost doubled since the beginning of 2020 and reported an increase in adjusted net income to 4.1 billion yuan ($845m).
Revenue from Xiaomi’s Internet of Things division, which manufactures devices such as smart cookers and robot vacuums, rose 56.2% in the third quarter.