“In 2021 we experienced a very complex situation,” Xiaomi president Wang Xiang mentioned in an earnings name.
“Supply is in a very severe or tight position, and there is a geopolitical impact. However, Xiaomi’s performance has shown we are a resilient company.”
Revenue rose to CNY 85.58 billion (roughly Rs. 1,02,341 crore) in the quarter ended December 31, in contrast with CNY 70.46 billion (roughly Rs. 84,259 crore) in the yr ancient times and analyst expectations for CNY 81.80 billion (roughly Rs. 97,826 crore), in accordance to Refinitiv information.
Smartphone shipments rose 4.4 % to 44.1 million models in the quarter, Xiaomi mentioned in an announcement.
Internet earnings rose 39.6 % to CNY 4.47 billion (roughly Rs. 5,345 crore), additionally above analyst expectations.
In an earnings name, Wang mentioned that making certain a gradual provide of chips was nonetheless difficult in the primary quarter of 2022, however anticipated the scenario to enhance by June.
The corporate, which will get the overwhelming majority of its income from promoting cellular handsets, mentioned smartphone income rose 18.4 % to CNY 50.5 billion (roughly Rs. 60,393 crore) in the quarter ended December 31.
Final yr, Xiaomi grabbed market share in its dwelling market China away from Huawei, which misplaced its smartphone momentum after the US positioned export restrictions on its suppliers. However Huawei spinoff Honor got here again sturdy in the second half of 2021, ending the fourth quarter with a 16 % market share in China — the identical as Xiaomi — in accordance to information from Canalys.
Xiaomi’s fourth-quarter smartphone shipments in China rose 10 %, in accordance to analysis agency Canalys. Globally, its shipments rose 5 %.
Slowing handset demand in China, the corporate’s largest market, has prompted Xiaomi to search for new alternatives.
The corporate is slated to make investments $10 billion (roughly Rs. 76,193 crore) over the subsequent ten years into making electrical automobiles, which it hopes to deliver to market by 2024.
The corporate has additionally ramped up investments in chips, releasing its first machine with a self-developed picture sign processor.
Wang mentioned that investments in chips would go into areas “directly related to user experience,” equivalent to quick charging.
Xiaomi has additionally expanded its brick-and-mortar retail footprint, in hopes of attracting extra prospects.
Xiaomi reported a 33.5 % rise in 2021 income, which hit CNY 328.3 billion (roughly Rs. 3,92,696 crore), versus a mean analyst estimate of CNY 325.862 billion (roughly Rs. 3,89,720 crore).
© Thomson Reuters 2022