Xiaomi reports good sales figures following first lockdowns

Following the first raft of national lockdowns around the world and the subsequent lower economic activity, Xiaomi has revealed that it saw a 13.6% rise in first-quarter revenue, beating estimates. According to the company, the increased revenue was driven by higher-than-expected sales for 5G models as well as sales overseas.

Earlier this month, Xiaomi, with its partners, started up Indian assembly lines in a limited fashion. With more stock being sold than expected, the fact that production has resumed will be good news for Xiaomi, which is quite well-known for its just-in-time approach which has allowed it to cut costs but offer quality products.

Last week, the United States decided to force the Taiwanese firm, TSMC, to abandon trade with Huawei in its latest escalation in the U.S.-China trade war. With things becoming increasingly difficult for Huawei, Xiaomi is able to fill the gap for those customers looking for a good performance device, at a low cost, from a reputable brand.

In Q1, Xiaomi’s sales revenue rose to 49.7 billion yuan ($7 billion) from 43.76 billion yuan ($6.16 billion) in the same period the year before. According to Reuters, analysts had predicted that Xiaomi’s sales would only amount to 47.86 billion yuan. Going forward, it’ll be very interesting to see how Xiaomi and its competitors perform following the outbreak of the coronavirus.

Source: Reuters