China’s tech titan, Xiaomi Corp. world’s third-largest smartphone vendor behind China’s Huawei and South Korea’s Samsung Electronics, headquartered in Haidian, Beijing, reported a 15 percent growth in operating profit over the second quarter of the year on Tuesday, the 20th of August 2019, missing an analysts’ estimate at a slight margin, as Xiaomi sales tumbled in its home-market, while its domestic rival Huawei Technologies had stepped up efforts in China amid a crippling ban by US President Donald Trump.
According to Xiaomi’s quarterly earnings’ report revealed on Tuesday (August 20th), the nine-year-old smartphone maker posted a revenue growth of $7.36 billion (¥51.95 billion) for the quarter that ended on June 30th on a year-on-year basis, while analysts were expecting a revenue of ¥53.52 billion.
Aside from that, Xiaomi’s net income was toppled by 87 percent to ¥1.96 billion, however, its operating profit of ¥3.64 billion on an adjusted basis managed to beat an analysts’ estimate of ¥2.74 billion.
In point of fact, Xiaomi had been facing off a perilous domestic smartphone market in China, as China’s economic growth had been fumbling, while Chinese consumers rallied on Huawei products, sales of which in China had witnessed a 31 percent upsurge during Q2, 2019, to pledge their supports on US sanction hit Huawei Technologies.
Nonetheless, despite growing glooms over the domestic market, Xiaomi’s shipment to Europe rose by 48 percent in Europe during the second quarter of the year.