Xiaomi, China's tech company and leading mobile phone maker revealed that the company's Q4 showed a great surge in its revenue. It was reported that the number exceeded the analysts' estimates as the company was able to gain more than triple of its standard revenues.
As per Reuters, Xiaomi stated on Tuesday, March 19 that its Q4 net profit rose to ¥1.85 billion or US$275.59 million which is triple of its previous revenue. The number surpassed the ¥1.7 billion average estimate and the earnings for the period recorded a 27 percent increase, as per Refinitiv data.
On the other hand, for the entire 2018, Xiaomi generated a total of ¥174.9 billion and made ¥8.6 billion as its net profit for that year. The company's shares shoot up to almost 30 percent since their slump in January.
The results showed Xiaomi is coping well despite the slow down in China's market in the mobile phone division. Channel News Asia reported that the company was able to avoid the effects of it's home country's slowing economy and managed to upped its sales by focusing on the international market.
Xiaomi expanded to several countries with big markets including Europe and India. Its overseas expansion proved to be a big success when in Europe, the Chinese brand was ranked the fourth biggest phone vendor in 2018.
Likewise, in Xiaomi's latest revenue report that revealed huge growth, the sales from overseas make up 40 percent of that total fourth-quarter profits. Apparently, the brand is rapidly growing in the Indian and European markets and this is why the company will focus on the global expansions this year.
"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's CFO, Shou Zi Chew, told the reporters via phone interview. "We will also expand into more new international markets in 2019."
Xiaomi is India's leading smartphone brand today and it was able to attain this position by selling cheap phone models with features that can rival the more expensive ones. In short, the company's selling point is "high value for money" smartphone units.
And while the thing that pushed Xiaomi to succeed big time in India was offering affordable mid-range mobile gadgets, the company made a move to revamp its smartphone models so they start selling pricier devices to further raise the firm's profit margins.
