Xiaomi posts 11% revenue rise on strong smartphone sales

investing.com:

By Yelin Mo and Brenda Goh

BEIJING (Reuters) -China's Xiaomi (OTC:XIACF) reported a 10.9% rise in fourth-quarter revenue and beat adjusted net profit estimates boosted by strong smartphone sales as the sector shows signs of recovery.

Revenue rose to 73.24 billion yuan ($10.17 billion) in the October-December quarter versus the 73.17 billion expected by analysts, LSEG data showed.

«As previously expected, the overall smartphone shipments in the second half of 2023 were better than the first half,» Xiaomi President Lu Weibing said on an earnings call.

«The global consumer electronics market continues to show a gradual recovery trend.»

The company's adjusted net profit rose 236.1% to 4.9 billion yuan, beating the 3.89 billion expected by analysts.

The smartphone industry has been showing signs of recovery after a long period of sluggishness.

Xiaomi's fourth-quarter global smartphone shipments were up 23% from a year earlier to 40.7 million handsets, ranking it third globally with a market share of 13%, data from researcher Canalys showed.

In China, its largest market, its shipments were up 12% to 9.5 million handsets, ranking it fifth, also with a market share of 13%.

Xiaomi received a boost from the release of its premium Mi 14 series, which saw sales surpass 1 million handsets within the first week of its October launch.

EV LAUNCH

Still, an increasingly saturated market has seen Xiaomi diversify away from its core smartphone business. It is also known in China for domestic appliances, and it has gone into electric vehicles — a plan first flagged in 2021.

Xiaomi aims to begin deliveries of its first vehicles in China this month through 59 of its stores across 29 cities. Market watchers expect to learn the price at a