Smartphone maker Xiaomi says China sales already close to full recovery
SHANGHAI (Reuters) – Chinese smartphone maker Xiaomi Corp stated on Tuesday that it was already seeing indicators of a robust recovery in sales in China because the nation begins to return to regular following the lockdown due to the coronavirus.
FILE PHOTO: An individual checks out the Xiaomi Mi 9 cell phone forward of the Mobile World Congress (MWC 19) in Barcelona, Spain, February 24, 2019. REUTERS/Rafael Marchante/File Photo
“The (Chinese) market has entered a full recovery stage, and the market has already recovered to 80 to 90% of the normal level,” CFO Shou Zi Chew stated on an earnings name.
He stated sales in China fell within the first quarter due to the financial affect of the virus, however didn’t say by how a lot.
Chew stated he anticipated demand for smartphones to be resilient globally despite the fact that the coronavirus was spreading to different nations. The firm will take successful in international sales throughout March and April, he stated, however he expects to see indicators of recovery in May.
“If we take reference from China’s experience, I think smartphone demand is resilient,” stated Chew. “It is a daily necessity in life. I think it will rebound quickly.”
Xiaomi reported on Tuesday a 27% bounce in income for October-December 2019, above analyst expectations.
Sales within the fourth quarter jumped to 56.5 billion yuan ($eight billion) from 44.42 billion yuan in the identical quarter a yr earlier. That beat analyst expectations of 55.6 billion yuan, in accordance to Refinitiv information. The firm derives roughly 60% of its income promoting cell handsets and in addition sells on-line advertisements and different forms of shopper hardware.
Revenue from the smartphones’ phase jumped 23% within the fourth quarter to 30.eight billion yuan. Excluding one-time objects, Xiaomi earned 2.34 billion yuan within the fourth quarter, above analysts’ estimate of 1.88 billion yuan. For the entire yr, Xiaomi’s revenue attributable to shareholders fell by a fourth to 10.04 billion yuan.
Bigger rival Huawei reported an annual revenue improve of 5.6% on Tuesday, its smallest rise in three years, harm by weak abroad sales amid an intensifying U.S. marketing campaign to limit its international growth due to safety considerations.
Overseas growth has been a key technique for Xiaomi previously few years, together with its Chinese rivals, because the home smartphone market endured a interval of contraction.
Reporting by Josh Horwitz, modifying by Louise Heavens and Susan Fenton