Chinese Smartphone producer Xiaomi’s quarterly income elevated because of the solid demands and requests in India and other developing markets however at this point it is still uncertain that whether it can maintain the same pace in the upcoming months. It brought up its profit to 14.6 billion yuan ($2.1 billion) out of 45.2 billion yuan revenue in its first earnings report since IPO.
Xiaomi which has now became the top smartphone seller in India after overthrowing Samsung Electronics from its place saw sales increase around 58.7% versus last year and to be particular it generated revenue from overseas markets for the quarter which ended in June 30 more than doubled from the year-ago. This overseas market opportunity gave Xiaomi enough exposure and provided massive growth production in its software and hardware departments. Average selling price of Xiaomi’s Smartphone in China increased more than 25% from previous year, but its gross profit margin decreased to 6.7% in the second quarter, compared to 8.7% a year ago. It didn’t only made its way up in India but its international revenue in the second quarter was 16.4 billion Chinese Yuan and is accounting to grow more. Xiaomi’s shares trade at 37 times forward 12-month earnings, well above Apple’s 18 times and Samsung’s six. Xiaomi, which has gained enormous market share in India by overthrowing Samsung and Apple from their top positions which was a dream for many of the other Smartphone makers from the very beginning, is scheduled to start selling a new Smartphone in the South Asian nation called Poco F1 at the end of this month. The POCO F1 packs a punch for the price, according to most of the reviews it is going to be the first in the world’s cheapest Smartphone, packing Qualcomm’s very own Snapdragon 845 processor. The cheapest version is expected to be sold at around 19,999 rupees in India, with discount schemes of 1000 rupees on selected credit card’s of Bank. The company will sell the device only in India at first, maintaining the market’s seriousness and loyalty towards Xiaomi. Xiaomi targets not only the Smartphone market but it is also targeting the service market by turning itself into an online service powerhouse and that will help the customers to get driven to the apps and services which will result in the boosting of its software driven segment. In China already Baidu, Alibaba and Tencent are well rooted in its smartphone segment and services so it will become more exciting to see how Xiaomi could perform well in China to monetize their Smartphone users. Apart from the Smartphone segment, the IoT and lifestyle products segment saw sales growing to 104.3%. After the launch of the Xiaomi’s smart TV in the Indian market in February, the product’s global sales volume rose over 350% for the second quarter. At the end of June, Xiaomi had about 115 million connected Xiaomi IoT devices and 1.7 million users who own more than five devices, the company said. Least to be said it’s an awesome start for the Xiaomi and let’s see whether it can continue to grow at this rate or not because of the other competitors that are also waiting to grab the market with their world class products. Stay tuned for more exciting news.