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Xiaomi posts strong profits in Q1 2019 as European expansion pays off
Xiaomi has enjoyed relatively good financial results in recent times, a far cry from its disappointing 2015 and 2016. Its run of good fortune looks set to continue, as it announced notable improvements for the first quarter of the year.
The company announced Q1 2019 revenue of 43.8 billion yuan (~$6.34 billion), making for a 27.2 percent improvement compared to a year ago. Meanwhile, Xiaomi reported net profit of 2.1 billion yuan (~$304 million) for the quarter — up 22.4 percent over Q1 2018.
Xiaomi’s results come despite a shrinking market in China, as Canalys reports that the Chinese market contracted by three percent in Q1 2019. The tracking firm found that the manufacturer was still in fourth place for the quarter, but saw a 13 percent year-on-year decline in smartphone shipments. Despite the contraction in shipments, Xiaomi says its Chinese marketshare has actually increased for three consecutive months.
Europe has also made a significant difference to Xiaomi’s bottom-line though, having only entered various European countries in 2017 and 2018. In fact, the Chinese brand reported year-on-year growth of 115 percent in Western Europe. Furthermore, it claimed to be in fourth place when it comes to shipments in Western Europe, citing Canalys statistics.
The company also reiterated its four million figure for Redmi Note 7 series sales, but also claiming 1.5 million Mi 9 series devices shipped. Xiaomi added that it had 20.7 million monthly active Mi TV and Mi Box users(up 55 percent year-on-year), and 261 million monthly active MIUI users (up 37 percent).
These signs generally point to a healthy 2019 for Xiaomi, especially as it builds its reputation in Europe and expands elsewhere. The firm’s decline in China is concerning though, as Huawei managed to reach record numbers and achieved year-on-year growth of 41 percent during this period. What do you think of Xiaomi’s prospects for the rest of the year? Let us know in the comments!