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Xiaomi Reports 2019 Revenues up 17.7% Y/Y But Trouble in 2020
April 12, 2020
Xiaomi reported strong results for 2019 with revenues growing 17.7% Y/Y to over CNY200 billion (US$28.2 billion) and its net profit surged 35% to CNY11.53 billion, bolstered by increased shipments of a number of products including handsets, TVs and IoT devices. TV shipments reached 12.8 million units in 2019, owing to the high price/performance ratios of its models. Sales of IoT devices and consumer electronics products contributed CNY62.1 billion to its total revenues, the company said.
While Xiaomi is able to ramp up its handset shipments to over 100 million units a year and claims that it has shipped over 230 million devices connected with its IoT platform, the fact that its net profit of 2019 was only one sixth of rival Huawei indicates a task in 2020 and beyond. Xiaomi has recently launched its high-end Mi 10 and Mi 10 Pro 5G phones, and its associate brand Redmi has also released a sub-CNY2,000 5G model, Redmi K30 5G. But Xiaomi the growth of its handset revenues slow down recently. Xiaomi is facing increasing competition from Huawei, OPPO and vivo in the China market as those brands enhanced their deployments in IoT plus 5G ecosystems, taking on Xiaomi's IoT operations. Xiaomi's handset shipments to Europe and emerging markets such as India will be affected seriously this year by the pandemic as phone shipments to Spain, France and Italy grew over 60% Y/Y in 2019.
April 12, 2020
Xiaomi reported strong results for 2019 with revenues growing 17.7% Y/Y to over CNY200 billion (US$28.2 billion) and its net profit surged 35% to CNY11.53 billion, bolstered by increased shipments of a number of products including handsets, TVs and IoT devices. TV shipments reached 12.8 million units in 2019, owing to the high price/performance ratios of its models. Sales of IoT devices and consumer electronics products contributed CNY62.1 billion to its total revenues, the company said.
While Xiaomi is able to ramp up its handset shipments to over 100 million units a year and claims that it has shipped over 230 million devices connected with its IoT platform, the fact that its net profit of 2019 was only one sixth of rival Huawei indicates a task in 2020 and beyond. Xiaomi has recently launched its high-end Mi 10 and Mi 10 Pro 5G phones, and its associate brand Redmi has also released a sub-CNY2,000 5G model, Redmi K30 5G. But Xiaomi the growth of its handset revenues slow down recently. Xiaomi is facing increasing competition from Huawei, OPPO and vivo in the China market as those brands enhanced their deployments in IoT plus 5G ecosystems, taking on Xiaomi's IoT operations. Xiaomi's handset shipments to Europe and emerging markets such as India will be affected seriously this year by the pandemic as phone shipments to Spain, France and Italy grew over 60% Y/Y in 2019.
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