Monday 20 May 2019 4:37 pm

Xiaomi posts sharp rise in revenue as it defies smartphone slowdown

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Chinese tech giant Xiaomi has bucked the downward trend in the smartphone market, posting a sharp rise in revenue for the first quarter.

Read more: China's Xiaomi reveals 5G smartphone with sliding camera

Revenue rose 27 per cent to ¥43.8bn (£5bn) in the three months to the end of March, while profit before tax rose to ¥3.7bn.

The figures beat analysts' estimates and came despite a slowdown in the global smartphone market as consumers opt to hold on to their devices for longer.

Xiaomi said it had increased its domestic market share to 11.8 per cent in March, despite a 2.9 per cent drop in shipments in the wider Chinese market over the “challenging” quarter.

But the growth was mainly driven by Xiaomi’s expansion in overseas markets, and the firm has retained its market-leading position in India.

The Chinese phone manufacturer said it had also benefited from the release of more upmarket handsets, as well as expansion in other products and services.

Read more: Foxconn revenues dive amid faltering smartphone sales

The strong quarterly performance comes amid a bitter trade war between China and the US, which has been spurred on by controversy over smartphone brands.

US President Donald Trump last week signed an executive order blacklisting Chinese firm Huawei, one of Xiaomi’s main rivals, and escalating tensions between the two countries.