Xiaomi Profits Triple in One Year; Company Now Seeks Global Expansion
Xiaomi beats profit view and now looking for global expansion
Xiaomi announced the results of its fiscal fourth quarter of 2018 and impressed investors. The company tripled its net income compared to the same period in 2017, reaching $275.59 million in the last three months of last year. That value also outperformed the Chinese financial market, which estimated a $253 million profit for Xiaomi in the period.
The company also managed to increase its overall revenue by 27%, but still fell short of investor expectations for this metric. In total, $6.6 billion was raised from $7 billion previously estimated. Throughout 2018, the company reached $26 billion in revenue and $1.2 billion in net income.
Smartphone, hardware, and services
It is interesting to note that of the company’s total revenue in the last 3 months of last year, 65.1% came from its smartphone business. Another 25.1% refers to other hardware products the company sells, especially in China, and 9.1% are the results of its service sector.
The last number is related to advertisements embedded in the software of their devices – such as the MIUI interface of mobile phones and the OS of their TVs. Revenue is also the result of other services offered by the company in its home country, and this was one of the biggest draws for investors who bought shares of the company in a recent IPO.
Xiaomi also highlighted its international expansion, noting that 40% of all its revenue in the mobile phone business came from sales outside China, especially in markets such as India and Europe.
“We will continue to explore the global markets and replicate the success in India in other key markets such as Indonesia and Western Europe,” Xiaomi CFO Shou Zi Chew said. “We will also expand into more new international markets in 2019.”
Even in a few months of acting in the old world, the company is already the fourth smartphone brand in the world.