HIGHLIGHTS
- The vast bulk of Xiaomi's earnings comes from the sale of smartphones.
- Xiaomi's smartphone shipments in China increased 10% in the fourth quarter.
- Xiaomi has also extended its physical store presence.
"We encountered a really tough scenario in 2021," Xiaomi president Wang Xiang stated during an earnings conference.
"There is a geopolitical influence on supply, which is quite severe or restricted. However, Xiaomi's success has demonstrated that we are a robust firm."
According to Refinitiv data, revenue increased to CNY 85.58 billion (approximately Rs. 1,02,341 crore) in the quarter ended December 31, compared to CNY 70.46 billion (about Rs. 84,259 crore) the previous year and analyst forecasts of CNY 81.80 billion (roughly Rs. 97,826 crore).
Xiaomi claimed in a statement that smartphone shipments increased by 4.4 percent to 44.1 million units in the third quarter.
Net income increased 39.6 percent to CNY 4.47 billion (about Rs. 5,345 crore), above expert projections.
During an earnings call, Wang stated that guaranteeing a consistent supply of chips was still difficult in the first quarter of 2022, but that the situation will improve by June.
The business, which derives the vast bulk of its revenue from the sale of mobile devices, reported an 18.4 percent increase in smartphone revenue to CNY 50.5 billion (approximately Rs. 60,393 crore) in the quarter ended December 31.
Last year, Xiaomi wrested market share from Huawei in its home market of China, which had lost momentum in the smartphone industry after the United States imposed export restrictions on its suppliers. According to Canalys statistics, Huawei subsidiary Honor rebounded well in the second half of 2021, concluding the fourth quarter with a 16 percent market share in China, the same as Xiaomi.
According to Canalys, Xiaomi's fourth-quarter smartphone shipments in China increased 10%. Its global exports increased by 5%.
Slowing device demand in China, Xiaomi's main market, has forced the business to seek other options.
The business plans to invest $10 billion (approximately Rs. 76,193 crore) in electric vehicles over the next ten years, with the goal of bringing them to market by 2024.
In addition, the business has increased its chip investments, delivering its first gadget with a self-developed image signal processor.
Wang stated that chip spending will be directed on areas "directly relevant to user experience," such as quick charging.
Xiaomi has also increased its physical store presence in the aim of luring more customers.
Xiaomi announced a 33.5 percent increase in sales for 2021, totaling CNY 328.3 billion (approximately Rs. 3,92,696 crore), compared to an average expert forecast of CNY 325.862 billion (roughly Rs. 3,89,720 crore).
