Xiaomi, one of the best-selling Chinese Smartphone vendors, has made a significant increase in their sales. In an interview, Xiaomi Corp. mentioned its fourth-quarter net profit meeting a staggering increase of over 1.85 billion yuan (approx. $275 million) exceeding an average estimate of 1.7 billion yuan, according to Refinitiv Data.
Since their primary production focus has been in India and Europe, the results of this radical increase are testaments to the fact that Xiaomi is promoting and weathering Chinese smartphone market, which undoubtedly is the world’s biggest smartphone market, in the correct regions.
Due to its accurate marketing strategies the following year, Xiaomi brought in a revenue of 174 billion yuan and made a net profit of 8.6 billion yuan. Despite their significant decrease in January 2019, Xiaomi Corp. shares met with an overwhelming increase of 30 percent.
It is an undeniable fact that the aggressive expansion of the company’s products in Europe since early 2018 has been a major factor in the highly-evident increased sales. Moreover, due to the expansion, the company is now recognized as the fourth-largest phone vendor in Europe.
The CFO of Xiaomi, China’s rocketing smartphone company, believes that since 40% of the sales in the fourth quarter of 2018 had been recorded from outside of the manufacturer’s country, global expansion has now become the company’s top priority.
Xiaomi smartphones have noticed a considerable refurbishment. Due to the emphatic upgrades in their technology, Xiaomi Corp. decided to increase the selling prices of the company’s phones by 17 percent and 10 percent in Chin and overseas, respectively.
The fourth quarter revenue was led by smartphone sales with a heightened portion of 65.1 percent while other hardware and internet services made up 25 percent and 9 percent of the revenue, respectively.
Furthermore, Xiaomi also emphasized that it would increase its research and development and plans to invest over 10 billion yuan in artificial intelligence in the next five years.
Image Source: XIAOMI