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Xiaomi 2020 Q1 results: Revenues rise 13.6% year-on-year

Xiaomi 2020 Q1 results Revenues rise 13.6% year-on-year

Xiaomi announced the fiscal results of the 2020 Q1, ended on March 31, which reflect a year-on-year rise in its revenues of 13.6%. Despite the problems related to the COVID-19, the company took advantage of both the sales of its high-end models compatible with 5G, especially in China, in addition to selling more terminals of all segments in the rest of the countries in those who have a presence.

Despite the problems caused by the coronavirus in supply chains, and the drop in demand for terminals, Xiaomi has managed to improve its results. In addition, its managers are optimistic about the future, as they have managed to resume production in mainland China, and appreciate that the demand for smartphones has rebounded rapidly. An optimism that contrasts with the prudence or pessimism of other manufacturers, such as Samsung or Apple, who have warned that the sector has a tough year ahead.

How many phones did Xiaomi sell in 2020 Q1?

The company’s sales revenue in the reported period has been about 7 billion dollars, and its profits have also registered a year-on-year growth of 10.6%. In this period, Xiaomi has sold 29.2 million phones. Its research and development spending has also increased by 13.4%. In addition, according to data from the consulting firm Canalys , Xiaomi has been the smartphone manufacturer that has grown the most in sales of the five with the highest sales worldwide. Its revenues outside China have grown by 47.6% compared to the same period of the previous year, and already account for half of all the company’s revenues.

Xiaomi Mi 10 Pro

Xiaomi Mi 10 Pro was one of the most popular phones

The company gets most of its income from the sale of smartphones, but it also has various ranges of consumer hardware and various accessories. Xiaomi has reached a penetration rate of 5G smartphones in China of 25.9%, above the industry average. On the other hand, the number of Internet of Things devices connected to Xiaomi’s IoT platform has risen to reach 252 million on March 31, a year-on-year increase of 42.6% .

According to its CEO, President and founder, Lei Jun, “Although the industry faces severe problems, the group has continued to experience growth in all segments despite the downward trend in the market, reflecting flexibility, resilience and competitiveness of the Xiaomi business model”. Jun also highlighted that “a crisis is the greatest litmus test for a company’s value, business model and growth powers. As the impact of the pandemic begins to soften, we will continue to focus on the 5G + AIoT strategy, and on strengthening our scale of investment.”