Chinese smartphone manufacturer Xiaomi has been able to rise above the odds, which were stacked against it and virtually every company in the world at the moment. In times of uncertainty of this magnitude, Xiaomi reports that it managed to beat analysts’ forecasts, and has registered a 13.6% growth in revenue over Q1 2020.
Being from China, the country where coronavirus first emerged, supply chains were massacred as people could not return to work after Chinese new year. This led to many companies, including Alibaba Inc., to suggest that Q1 would be a tough time for business in the mainland, forecasting losses or at the very least, a slowdown in growth. However, Xiaomi seems to have bent the rules, as sales for Q1 rose to 49.7 billion yuan ($7 billion) , from 43.76 billion yuan in Q1 2019. Analysts predicted the company to reel in no more than 47.86 billion yuan.
However, profits for the same time period fell 32.3% to 2.16 billion yuan. Still, this brought the adjusted net total to 2.3 billion yuan, which beats market estimate of 2.12 billion yuan, albeit with a very small margin.
This is in line with a report from Canalys which came out just a little while ago, which suggested that even though the top 3 players in the smartphone market, Samsung, Huawei and Apple saw 17%, 35% and 8% declines in shipments respectively, Xiaomi managed to bump its numbers up by 9%. The company managed to amass an 11.1 % market share, making its way as the 4th largest smartphone supplier in the world.
However, from the same report, we can also predict the path for Q2. According to analysts at Canalys, the worst is still ahead of us, as they expect Q2 to have a devastating effect on the market and worldwide shipments.
“Most smartphone companies expect Q2 to represent the peak of the coronavirus’ impact,” an analyst at the firm said.
However, since Xiaomi was able to beat the analysts’ predictions in Q1, there’s no reason to expect that it wouldn’t do that again.
