 |
| Xiaomi's revenue rises as it prepares to expand self-driving |
After the strong growth in the share of the Chinese tech giant in the global smartphone market, Xiaomi reported net profit of $1.28 billion and sales of $13.56 billion in the second quarter.
In the quarter ending in June, the company announced that revenue was up 64% year over year and net income was up more than 80% year over year.
The company said its smartphone sales amounted to $9.1 billion. This is due to the massive increase in smartphone shipments this quarter to 52.9 million units. It overtook Apple to become the second largest seller of smartphones in the world.
The US government's sanctions against rival Xiaomi have weakened the tech giant's smartphone industry.
This allows Xiaomi to expand its domestic and global market share with other manufacturers.
The company's revenue in the Internet of Things and Lifestyle categories increased 36% to $3.2 billion.
Shortly after the results were announced, the company announced that it had acquired Deepmotion, a self-driving technology startup founded four years ago, for $77.3 million.
The company said its investment in Deepmotion will help reduce the time needed to market its products.
This investment follows Xiaomi's bold plan to invest $10 billion in electric vehicles over the next decade.
Xiaomi is the latest Chinese technology company to enter the electric car industry. Chinese search engine giant Baidu announced earlier this year that it would produce electric cars with the help of automaker Geely.
Last November, Alibaba and China's state-owned automaker SAIC announced their collaboration to produce electric cars.
Share-service company Didi and electric car maker BYD also helped shape the ride-sharing model.
Xiaomi sales reach $13.56 billion
Internet giants are competing with several startups in the field of electric cars. For example, Xiaopeng, Weilai and Liqi offer a variety of models that are often compared to Tesla.
Hence, these companies are trying to differentiate themselves by investing in features ranging from in-car entertainment to self-driving.
For Xiaomi, the obvious advantage for the auto industry lies in its extensive retail network and global fame.
In addition, some of its smart devices, such as smart speakers and air purifiers, can be integrated into its cars as a selling point.
Manufacturing is the real challenge. Compared to the telephone industry, the automobile industry is more capital intensive and its supply chain is long and complex.
Reuters reported last week that Chinese company Evergrande is negotiating to sell its electric car division to Xiaomi. The company said it is in contact with a number of automakers. But he has not yet decided which company he wants to cooperate with.
The vast majority of the company's revenue comes from mobile phone sales. But you can also make money by selling ads and other types of consumer devices online.