Smartphone maker Xiaomi’s revenue in the second quarter grew by a record 64 percent from last year, it said Wednesday, announcing the purchase of an autonomous driving startup that is gearing up to enter a competitive market.
Sales reached 87.8 billion yuan (approximately Rs 1,00720 crores), up from 53.54 billion a year earlier, and exceeded analysts’ expectations of 84.53 billion yuan (approximately Rs 96,900 crores).
Net income reached 6.32 billion yuan (approximately Rs 7,240 crore), up 87.4 percent from a year earlier and exceeding analysts’ expectations.
The US government sanctions against rival Xiaomi Huawei effectively paralyzed the tech giant’s smartphone arm and allowed Xiaomi, along with Chinese Android manufacturers Oppo and Vivo, to increase their market shares.
According to research firm Canalys, Xiaomi’s share of the global smartphone market for the quarter ended June grew 83 percent year on year. The company sold 52.8 million phones, making it the second most popular brand in the world for the first time in its history, behind Samsung and ahead of Apple.
However, in the domestic market, the company still lags behind Oppo and Vivo in terms of shipments.
Xiaomi also announced Wednesday that it is acquiring autonomous driving startup Deepmotion for approximately $ 77.37 million (roughly Rs 575 crore) in an effort to boost its own research and development in the area, said company president Wang Xiang.
In March, Xiaomi announced that it would spend $ 10 billion (roughly Rs 74,260) to enter the electric vehicle sector. The company has yet to officially announce any partnerships or plans for its first model, although public posts on job search sites show the company is aggressively recruiting talent.
Reuters reported last week that China Evergrande Group is in talks to sell its electric vehicle to Xiaomi. Xiaomi said it is in contact with various automakers, but has yet to decide who to work with.
The company makes the vast majority of its revenue from selling mobile phones, but it also makes money selling online advertisements and other types of consumer equipment.
Xiaomi’s internet services division, which makes money primarily through advertising in various apps, grew 19.1% year over year.
© Thomson Reuters 2021