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Xiaomi’s profits skyrocket towards the end of 2021 — the company took away market share from Huawei
Xiaomi reports 37% profit growth in the fourth quarter of last year. The reason for this was the rapid reduction in the position of Huawei, which faced enormous difficulties due to tough US sanctions.
Xiaomi reportedly reported adjusted net income of $ 491 million for the last quarter of 2021, well above the analyst average of $ 440 million. According to data filed on the Hong Kong Stock Exchange, Xiaomi’s revenue is up 25% to $ 10.8 billion.
Xiaomi boosted smartphone shipments by 32% in the last three months of last year, boosted by a decline in Huawei’s market share. The supplies of this company fell by more than 40% due to US sanctions. Unfortunately, in the coming months, Xiaomi’s growth may be limited by a shortage of important components, primarily semiconductor products.
Xiaomi’s global sales revenue up 28% in the final quarter of last year. The company’s share in the Chinese market increased to 14.6% from 9.2% a year earlier. In addition, Xiaomi has taken the lead in smartphone sales in India and Eastern and Central Europe.
Xiaomi shares dropped 2.5% on the Hong Kong stock exchange ahead of Q4 financials release earlier today. As a reminder, earlier this month, the company unveiled a $ 1.3 billion share buyback plan, and a U.S. federal judge temporarily suspended the Trump administration’s order to restrict U.S. investments in Xiaomi.
Xiaomi is expected to further strengthen its market position in 2021. Analysts predict the company’s global smartphone shipments this year will grow by 34%, to about 200 million units.