Xiaomi shipped 32.1 million smartphones in the third quarter of 2019, raking in 32.3 billion yuan from its main revenue driver.
According to financial results released Wednesday, Xiaomi’s total revenue in the third quarter reached 53.66 billion yuan, up 5.53 percent year on year. Its adjusted profit stood at 3.47 billion yuan, up 20.3 percent from last year.
Xiaomi said its profit margin of smartphones rose from 8.1 percent in the second quarter to 9 percent in the third quarter. Its average sales price for smartphones in China went up by 4.6 percent because of its development of the middle to high-end market.
However, its revenue from smartphone sales went down by 7.8 percent year on year to 32.27 billion yuan, compared with a 5 percent increase in the second quarter.
In addressing this, Shou Zi Chew, Chief Financial Officer of Xiaomi, said the third quarter was among the period of transformation from 4G to 5G, so Xiaomi choose a stable stragety.
He said Xiaomi is confident of the 5G era and its advantages in IoT will also drive smartphone sales.
Smartphone sales have been on the decline for Q3 2019 according to Gartner. This was the third consecutive quarter of decline for smartphone sales, but the smallest decline of the year, with a 1.7% drop in the second quarter of 2019, and a 2.7% drop in the first quarter of 2019.
On the bright side, however, sales are expected to pick up again next year.
“We expect 2020 to be a growth year,” says Anshul Gupta, a senior research director at Gartner. “Midtier smartphones will remain key to drive growth across market segments worldwide more so in emerging markets due to aspirations to own best possible smartphone.”
Huawei was the only one of the top-five global smartphone vendors to achieve double-digit growth in smartphone sales in the third quarter of 2019. The company sold 65.8 million smartphones, an increase of 26%, year over year, Gartner said in its report.
Huawei’s performance in China was the key driver of its global smartphone sales growth. It sold 40.5 million smartphones in China and increased its share of the country’s market by almost 15 percentage points, according to Gartner.
(Graphic from Xiaomi)
(Graphic from Gartner)
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