Xiaomi swings back to net profit in Q3 boosted by smartphone sales in India, Europe
Xiaomi became the largest selling smartphone brand in India with 27.3 percent market share, shipping 11.7 million units for the third quarter of this year.
Chinese smartphone maker Xiaomi swung back to a net profit in the third quarter boosted by robust sales in India and Europe. Xiaomi reported a net profit of 2.48 billion yuan ($357.23 million) for the quarter ending September as against a loss of 11 billion yuan in the same period last year, according to media reports.
The company's revenue at the end of the third quarter touched 50.85 billion yuan or $7.32 billion, recording a growth of 49.1 percent.
In India, Xiaomi achieved success with its budget Redmi phone series. It entered Europe in 2017 with launches in Russia and Spain and earlier this month, released its flagship Mi 8 Pro device in Britain. The revenue of Xiaomi’s smartphone segment grew by 36.1 percent, while that of the internet service division increased by 85.5 percent. Phones made up 64.6 percent of total sales, while internet services made up 9.3 percent.
According to International Data Corporation (IDC), Xiaomi shipped 11.7 million units in the third quarter to become the top brand in the Indian market with 27.3 percent share. The Redmi 5A and Redmi Note 5 Pro continued to be the best selling smartphones in India.
According to the IDC "Quarterly Mobile Phone Tracker", the smartphone market in India touched an all-time high of 42.6 million unit shipments in the quarter ending September 30, registering a 9.1 percent year-on-year growth.
Samsung was a distant second with a 22.6 percent share, according to IDC. Vivo has a market share of 10.5 percent and is placed at the third position in the Indian market. Micromax and Oppo take the fourth and fifth positions with a market share of 6.9 percent and 6.7 percent respectively.
Xiaomi, along with other low-cost handset makers Oppo and Vivo, accounted for around a quarter of the global smartphone market in the first half of 2018.