How Xiaomi Rises from Adversity, Profits Jump 183% Tech – 8 hours ago

Jakarta, CNBC Indonesia – The year 2022 can be said to be a difficult time for Xiaomi. The Chinese manufacturer carried out mass layoffs, followed by the departure of several big bosses.

Until the first semester of 2023, Xiaomi’s business is still struggling to face uncertain macroeconomic conditions which have resulted in a decline in smartphone sales.

However, now Xiaomi is starting to rise from adversity. The third quarter (Q3) 2023 report shows business performance above market expectations.

Xiaomi’s sales reached 70.9 billion yuan (Rp. 154.3 trillion) or beat the estimates of 13 analysts who pegged the figure at 70.2 billion yuan, quoted by Reuters, Tuesday (21/11/2023).

Profit also jumped 183% in Q3 2023 year-on-year (YoY), to 6 billion yuan (Rp. 12.9 trillion). In fact, consensus estimates peg Xiaomi’s profit at 4.6 billion yuan.

Xiaomi’s booming profits are due to the company’s efficiency in reducing component and operational costs. Apart from that, the latest flagship series Xiaomi 14 was also greeted with great enthusiasm.

“Even though external factors are still not positive, the achievements we have been able to achieve show an increase in our overall capabilities,” said Xiaomi President Lu Weibing in front of investors when reporting the company’s performance.

Xiaomi became the 5th largest smartphone brand in China with shipments of 9.1 million units throughout Q3 2023, according to the firm Canalys. In the midst of a 5% drop in the overall HP market, Xiaomi was able to record positive growth.

Xiaomi 14 contributed greatly to this growth. No less than 1 million units of Xiaomi 14 were sold in the first week of its launch.

Investors are also optimistic about the development of the electric vehicle division that is being built by Xiaomi. Last week, BAIC Group, an automotive manufacturer from Beijing, registered two electric car models under the Xiaomi brand. This indicates that the product will soon enter the production stage.

Xiaomi said mass production for electric cars will start in the first half of 2024.

[Gambas:Video CNBC]

Next Article

List of Xiaomi cellphones with MIUI 15 leaked, check here