Xiaomi reports better-than-expected profit in smartphone market

livemint.com:

Bloomberg News. However, the average estimate of Xiaomi's net income was 3.16 billion yuan. The report stated that revenue slid a less-than-projected 4% to 67.4 billion yuan, narrowing declines from previous quarters when the smartphone market slump was at its worst.

The Beijing-based smartphone company has been spending on cuts that helped stabilize the bottom line during China's faltering economic recovery. The domestic mobile market is now showing signs of bottoming out, Bloomberg reported. Xiaomi has sold more premium smartphones and its average selling price in China climbed more than 24%.

The executives have reaffirmed the company's intention to expand in regions such as Latin America and Europe into new arenas. Speaking to media persons, President Lu Weibing said, "As a consumer electronics player, Xiaomi has to scale up in global markets. Xiaomi will firmly proceed with the legal actions in India.

We’ve actually seen a pretty big improvement in Indian business, I believe you will see some indexes showing the change soon." Billionaire Xiaomi co-founder Lei Jun has turned his attention to a $10 billion electric car venture, which recently won approval from China’s powerful state planning agency, Reuters reported last week. With the first vehicle planned for next year — pending a full set of regulatory licenses — the EV business could contribute as much as 5% of Xiaomi’s 2024 revenue, Bloomberg Intelligence estimates. Meanwhile, Xiaomi also boosted its research spending by 21% to 4.6 billion yuan, of which more than a third went toward its EV project.