Chinese manufacturing giant, Xiaomi, has been doing quite well in the smartphone market. Its performance in China and India (especially India) has been top-notch. The company has been the number one brand in the Indian market for almost two years. Although Xiaomi’s smartphones may not be the best, they offer good value for money. Today, Xiaomi Group released its first-quarter earnings report for 2020. Xiaomi’s Q1 2020 financial records show that the company’s revenue hit 49.702 billion yuan ($7 billion), an increase of 13.6% year-on-year. The adjusted net profit under non-IFRS measurement hit 2.301 billion yuan ($325 million), an increase of 10.6% year-on-year.
After the release of the financial report, Xiaomi President and Acting CFO, Wang Xiang, Vice President of Finance, Wang Yonghua, and other executives held a financial report conference call to interpret the main points of the financial report. They also took some questions from reporters.
COVID-19 did not have much impact on Xiaomi’s Q1 2020 financial result
According to Wang Xiang, the coronavirus pandemic did not have much impact on the smartphone market. This is because, in recent times, the market was not recording any significant growth. Thus, the decline in the pandemic times is not as bad as many expect.
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He further stated that Xiaomi will fully promote popularize 5G smartphones in China from this month. According to Mr. Wang, there will be a recovery from the coronavirus pandemic from this month too. He further stated that the company has been coping with the fierce competition in the Chinese market. Xiaomi will continue to use its usual strategies. He said
“In foreign markets, Xiaomi is still in a stage of rapid development. Although our market share is low, it has also exceeded 10% for the first time and hit 11.1%. But according to what I just shared with you, there is still a lot of room for growth…There are several very important strategies to share with you again. The first is the dual-brand strategy. We will use the two brands Redmi and Mi to serve the needs of customers at different price points. Redmi focuses on the ultimate price-performance ratio and e-commerce platform. It maximizes the performance of the product and the price. It allocates some other more expensive designs but focuses on the hard indicators and performance of the product. The Mi brand also focuses on e-commerce platforms to continuously improve the efficiency…”
Furthermore, Xiaomi’s Q1 2020 smartphone sales hit 29.2 million units. This is an increase of 4.7% year-on-year.