Xiaomi's Q3 Revenue Rises 22% on EV and Tech Ventures

Post by : Bianca Suleiman

Xiaomi, recognized as the third-largest smartphone producer globally, has announced an impressive year-on-year revenue growth of 22.3% for the third quarter, highlighting its strategic push beyond just smartphones. For the quarter ending September 30, revenue totaled 113.1 billion yuan ($15.9 billion), falling slightly short of the analysts' consensus forecast of 116.5 billion yuan.

The company’s commitment to diversifying into electric vehicles and smart technologies is beginning to yield results. Even though revenue was modestly below expectations, Xiaomi's adjusted net profit surged by 80.9% to reach 11.3 billion yuan, surpassing the anticipated figure of 10.3 billion yuan. This success illustrates Xiaomi's adeptness at managing costs and enhancing profit margins despite the intense competition in the global smartphone arena.

Xiaomi is fortifying its position across several industries, encompassing smartphones, household electronics, and electric vehicles, with aspirations of becoming a pivotal player in future mobility. Despite reporting positive earnings, shares on the Hong Kong exchange dipped by 2.81% to 41 HKD, although they remain up 18.2% for the year.

These results demonstrate Xiaomi’s dual approach of not only ensuring robust consumer electronics sales but also investing in long-term ventures such as electric vehicles. Analysts believe this positions Xiaomi as a technology frontrunner in Asia, with promising prospects for global expansion in the years to come.