SHENZHEN, China (Reuters) – Xiaomi Corp reported a revenue drop of 4% in the second quarter on Tuesday, tracking a continued sales decline in China’s handset market.
Sales dropped to 67.4 billion yuan ($9.24 billion), down from 70.17 billion in the same quarter yuan a year earlier, but beating analysts’ estimates of 65.13 billion yuan.
Net income rose to 5.14 billion yuan over the period, an increase of 147% from 2.08 billion yuan a year earlier, also beating analysts’ expectations.
Consumer demand in China’s smartphone market continued to shrink in the second quarter, dropping 5% to 64.3 million units, according to research firm Canalys.
Xiaomi’s shipments declined by 19% to 8.6 million, while in major overseas market India, Xiaomi shipments also fell 22% to 5.4 million units, Canalys said.
In light of declining handset sales, Xiaomi is planning to manufacture electric vehicles (EVs) and has received approval from China’s state planner, Reuters reported this month.
The company has pledged a $10 billion investment over a decade in the automobile business and set a goal of mass car production for the first half of 2024.
($1 = 7.2915 Chinese yuan renminbi)
(Reporting by David Kirton. Editing by Sam Holmes and Louise Heavens)
