Xiaomi optimistic about prospects as supply capacity recovers to 90 pc despite coronavirus crisis
Chinese tech major Xiaomi on Tuesday said its supply capacity has recovered to 90 percent of normal levels, and the company remains optimistic about its future prospects despite the impact of the coronavirus pandemic.
Xiaomi, which is the top player in the Indian smartphone market, recorded a 17.7 percent year-on-year increase in revenues to RMB 205.84 billion (about Rs 2.18 lakh crore) in 2019. Nearly half of its smartphone revenue (RMB122.1 billion) came from overseas markets, including India.
Its revenue was at a "historical high" of about RMB 56.47 billion - an increase of 27.1 per cent y-o-y - making October-December 2019 period its "best performing quarter of the year".
"Despite the impact of COVID-19, we remain optimistic about our future prospects. To date, our supply capacity has recovered to 90 per cent of normal levels and we are seeing light at the end of the tunnel in China. Fortune favours the brave and this year, Xiaomi will continue to act swiftly and decisively," Xiaomi Chairman Lei Jun said in his letter to investors.
The coronavirus outbreak, which originated in Wuhan in China, has spread across the world and has claimed over 34,000 lives. The rapid spread of the infection forced shutdown of factories and people to stay indoors to protect themselves in China, which is a major supplier of electronics and components to companies across the world.
Jun pointed out that experience from SARS epidemic and global financial crisis in 2003 and 2008 respectively, had taught him and his colleagues that crises are "the ultimate litmus test" that separates successful companies from others.
"Our efficient operations, strong execution capabilities and consumer trust will enable us to seek out opportunities during crises and stay on a sustainable growth trajectory," he added.
Jun said the company has maintained its focus on efficiency to tide over this economic black swan with everyone.
He highlighted that the company plans to invest RMB 50 billion in the next five years to focus on technological innovation and user experience to grow its Mi Fan base.
Citing industry reports, Xiaomi said the company was the largest smartphone brand in India by shipments for ten consecutive quarters and had captured a market share of about 28.7 per cent in December 2019 quarter.
It also ranked first in India in terms of smart TV shipments for seven consecutive quarters as of the fourth quarter of 2019, Xiaomi added.
(Edited by Javed Gaihlot)