People wearing face masks visit the Xiaomi brand store, amid the coronavirus disease (COVID-19) outbreak in Kiev, Ukraine on October 22, 2020. REUTERS / Valentyn Ogirenko / File Photo

Chinese smartphone maker Xiaomi Corp (1810.HK) on Wednesday reported first quarter revenue growth of 55%, beating analysts’ expectations by gaining market share from industry leader Huawei Technologies Co Ltd ( HWT.UL).

Revenue reached 76.88 billion yuan ($ 12 billion) in the quarter ended March 31, from 49.70 billion yuan a year earlier. Analysts were forecasting revenue of 74.5 billion yen, according to data from Refinitiv.

Adjusted net profit rose to 6.1 billion yuan, compared to market estimates of 3.97 billion yuan.

Xiaomi’s share of China’s smartphone market grew 75% year-over-year in the quarter ended at the end of March, according to research firm Canalys, as Huawei exits the market as a result US trade restrictions that limited its ability to source key components for its handsets. .

Smartphone sales revenue jumped 69.8% year-on-year to 51.5 billion yuan, while Internet service revenue increased 11.4% to 6.6 billion yuan.

Despite revenue growth, Xiaomi and other electronics brands remain hampered by the global chip shortage.

A number of causes such as storage, growing demand for personal computers during COVID-19, and factory crashes have prompted a number of hardware manufacturers to embark on semiconductor research in the end. from last year.

Still, on a call with investors, Xiaomi CFO Alain Lam said the company’s chip stocks remained at “healthy” levels and that he did not expect a major impact. on activities this year, although the wider shortage does not end until mid-2022.

Executives also added that the company intends to double the number of offline retail stores it owns in China from around 5,000 currently to more than 10,000.

In India, at the same time, one of its main foreign markets, the company will invest more in online sales as the government imposes strict lockdowns due to an increase in the number of COVID-19 cases.

This quarter, Xiaomi also announced that it will officially start producing electric cars, with a new division headed by Xiaomi founder Lei Jun.

The US government also removed the company from a blacklist that would have barred US-based investors from owning shares in the company, undoing one of former US President Donald Trump’s latest maneuvers against the tech industry. Chinese before leaving office. Read more

($ 1 = 6.3930 yuan Chinese renminbi)

Our Standards: Thomson Reuters Trust Principles.

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