“In 2021, we have experienced a very complex situation,” Xiaomi President Wang Xiang said in a conference call.
“Supply is in a very difficult or strained position and there are geopolitical implications. However, Xiaomi’s performance has shown that we are a resilient company.”
Revenue increased to CNY85.58 billion (about Rs.1,02,341 crore) for the quarter ended December 31, compared to CNY70.46 billion (about Rs.97,826 crore), according to Refinitiv data.
Smartphone shipments rose 4.4 percent to 44.1 million units in the quarter, Xiaomi said in a statement.
Net profit rose 39.6 percent to CNY4.47 billion (about Rs.5,345 billion), also beating analysts’ expectations.
In an earnings call, Wang said securing a steady supply of chips in the first quarter of 2022 is still a challenge, but expected the situation to improve by June.
The company, which derives the bulk of its revenue from sales of mobile phones, said smartphone revenue rose 18.4 percent to CNY 50.5 billion (about Rs. 60,393 billion) in the quarter ended December 31.
Last year, Xiaomi grabbed market share in its home market of China from Huawei, which lost its smartphone momentum after the United States imposed export restrictions on its suppliers. But Huawei spinoff Honor came back strongly in the second half of 2021, ending the fourth quarter with a 16 percent market share in China — along with Xiaomi — according to data from Canalys.
Xiaomi’s smartphone shipments rose 10 percent in the fourth quarter in China, according to research firm Canalys. Globally, its shipments increased by 5 percent.
Slowing demand for mobile phones in China, the company’s largest market, has prompted Xiaomi to look for new opportunities.
The company plans to invest US$10 billion (around Rs.76,193 billion) over the next decade in manufacturing electric cars, which it aims to launch by 2024.
The company has also increased its investment in chips, launching its first device with a self-developed image signal processor.
Wang said investment in chips would flow into areas “directly related to user experience,” such as B. fast charging.
Xiaomi has also expanded its brick-and-mortar retail presence in hopes of attracting more customers.
Xiaomi reported a 33.5 percent increase in sales in 2021, reaching CNY 328.3 billion (approximately Rs. 3,92,696 crore) against an average analyst estimate of CNY 325.862 billion (approximately Rs. 3,89,720 crore).
© Thomson Reuters 2022