Chinese smartphone maker Xiaomi posted its slowest-ever quarterly revenue growth, as the country's smartphone market copes with a protracted lull in sales and bigger rival Huawei grabs more market share. Revenue in the first quarter ended September 30 rose 5.5 percent to CNY 53.66 billion (roughly Rs. 53,900 crores) from the same period last year, largely in line with analysts' expectation of CNY 53.74 billion. Net income rose to CNY 3.47 billion (roughly Rs. 3,500 crores), up from CNY 2.50 billion a year ago.
Demand for smartphones has eased in China as consumers hold on to devices longer. As well, Chinese shoppers have rallied behind and boosted sales at Huawei, the world's second-largest smartphone maker, which was added to a trade blacklist by the United States.
Xiaomi shipments to Chinese consumers fell by a third in the September quarter, according to market research firm Canalys, while Huawei's rose 66 percent. Total smartphone shipments in China shrank 3 percent.
Once the darling of China's smartphone industry, Xiaomi still makes most of it money selling smartphones but has been touting its aspirations to boost its internet services division, which mainly consists of online ad sales.
Revenue from this business jumped 12.3 percent to CNY 5.31 billion on the year. The unit contributed 10 percent of the company's total sales, roughly the same as when it listed in August 2018.
© Thomson Reuters 2019