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| Xiaomi's profits rise as Huawei retreats |
Chinese smartphone maker Xiaomi today announced that its net profit rose 36.7% in the fourth quarter. The rival Huawei, undoubtedly, has withdrawn from the global market due to the sanctions imposed by the United States of America.
For the quarter ended Dec. 31, adjusted net income rose to 3.2 billion yuan (491 million US dollars), beating analysts' expectations of 2.9 billion yuan.
Revenue increased 24.8% year-on-year to 70.5 billion yuan, and smartphone sales, which accounted for the bulk of Xiaomi's sales, were 42.6 billion yuan, an increase of 38.4%.
In the October-December quarter, Xiaomi's shipments to China increased 52% year over year, and the company accounted for 15% of the market.
After Washington banned the main components of its smartphones, shipments of Huawei phones in China and abroad decreased.
In anticipation of this opportunity, Xiaomi and other Android smartphone manufacturers increased production of their devices late last year.
However, this has led to a persistent shortage of chips, in part because consumer electronics demand during the pandemic has outpaced supplies from chip makers such as Qualcomm.
Xiaomi chief Wang Xiang said: The increased costs related to the chip shortage may extend to consumers in some cases. We're under a lot of pressure, but we're hoping for a good job.
In February, Xiaomi Vice President Lu Weibing described the problem as a serious defect.
Overseas sales increased by 27.6% to 33.8 billion yuan, or 47.9% of the company's sales.
This is an easy return to domestic market dependence. The company announced in the first quarter of 2020 that more than 50% of its sales would be generated in the international market for the first time.
Also Wednesday, the Chinese smartphone manufacturer announced that Xu Zizou, its international division chief and CEO, has resigned.
ByteDance, the owner of TikTok, said Chiu has been named as the new CFO, which indicates that the tech company is going public for one or more of its long-awaited companies.
Xiaomi also announced that it will acquire the remaining 50.09% of its branded mobile phone charger manufacturer Xiaomi Zimi after purchasing a minority stake.
Xiaomi said: The last stock purchase was valued at $ 204.7 million.
The Chinese mobile phone company announced that its annual revenue for 2020 will be 245.9 billion yuan, an increase of 19.4%, and that its adjusted profit will increase 12.58% to reach 13 billion yuan.