WATCH: Xiaomi posts slowest-ever revenue growth in third quarter
INTERNATIONAL - Chinese smartphone maker Xiaomi Corp posted its slowest-ever quarterly revenue growth, as the country’s smartphone market copes with a protracted lull in sales and bigger rival Huawei grabs more market share.
Revenue in the first quarter ended Sept. 30 rose 5.5 percent to 53.66 billion yuan from the same period last year, largely in line with analysts’ expectation of 53.74 billion yuan.
Net income rose to 3.47 billion yuan, up from 2.50 billion yuan a year ago.
The demand for smartphones has eased in China as consumers hold on to devices longer. As well, Chinese shoppers have rallied behind and boosted sales at Huawei, the world’s second-largest smartphone maker, which was added to a trade blacklist by the United States.
The Chinese smartphone makers shipments to Chinese consumers fell by a third in the September quarter, according to market research firm Canalys, while Huawei’s rose 66 percent. Total smartphone shipments in China shrank 3 percent.
Once the darling of China’s smartphone industry, the Chinese company still makes most of it money selling smartphones but has been touting its aspirations to boost its internet services division, which mainly consists of online ad sales.
Revenue from this business jumped 12.3 percent to 5.31 billion yuan on the year. The unit contributed 10 percent of the company’s total sales, roughly the same as when it listed in August 2018.Reuters