Announced Chinese smartphone maker Xiaomi today, Wednesday, reported a 36.7 percent increase in fourth-quarter net profit, with a decline a company Huawei is steadily competing from the global market due to US-led sanctions.
Adjusted net profit for the quarter ended Dec. 31 rose to 3.2 billion yuan ($ 491 million), beating analysts’ expectations of 2.9 billion yuan.
Sales jumped 24.8 percent year on year to 70.5 billion yuan, and smart phone sales, which account for the bulk of Xiaomi’s revenue, reached 42.6 billion yuan, an increase of 38.4 percent.
In the October-December quarter, Xiaomi’s shipments in China were up 52 percent from the previous year, and the company captured 15 percent of the market share.
After the ban imposed by Washington on the main components of its smartphones, shipments of Huawei cell phones in China and abroad have decreased.
In anticipation of this opportunity, Xiaomi and other Android smartphone makers increased production of devices at the end of last year.
However, this has contributed to the persistent shortage of chips that has resulted in part from consumer electronics demand during the pandemic, outstripping supply from chip makers, such as Qualcomm.
Xiaomi Chairman Wang Xiang said: The cost increases associated with the chip shortage may be transmitted to consumers in some cases, andWe feel the pressure, but we’re looking at a good case.
In February, Xiaomi Vice President Lu Weibing described the problem as severe shortage.
Overseas sales grew by 27.6 percent to 33.8 billion yuan, accounting for 47.9 percent of the company’s revenue.
This marks a slight return to reliance on its home market, as the company announced in the first quarter of 2020 that more than 50 percent of its revenues came from international markets for the first time.
Also on Wednesday, the Chinese smartphone maker announced that Shou Zi Chew, its international division chief and CEO, has resigned.
TikTok’s owner, ByteDance, said it had appointed Chiu to a newly created position as chief financial officer, a sign that the tech company is moving toward the long-awaited initial public offering of one or some of its businesses.
Xiaomi also announced that it is acquiring the remaining 50.09 percent of Zimi, the maker of Xiaomi’s branded cell phone chargers, after previous minority stake purchases.
Xiaomi said: The last purchase of the shares was valued at $ 204.7 million.
The Chinese phone maker announced annual revenue for 2020 of 245.9 billion yuan, up 19.4 percent, and adjusted profit rose 12.58 percent to 13 billion yuan.