TechnologyXiaomi increases sales by 21%, plans to overcome the materials crisis and...

Xiaomi increases sales by 21%, plans to overcome the materials crisis and the future in electric cars

The smartphone giant Xiaomi, currently in third place in the world by market share, posted a 40 percent increase in net profit with its latest quarterly profit, to 4.47 billion yuan (approximately 637 million euros). Sales grew 21 percent to 85.6 billion yuan (11 billion euros), surpassing the company’s forecast of 81.5 billion yuan. Xiaomi increased smartphone shipments worldwide by 3.9 percent in the last quarter of 2021, against the competition of Apple and Oppo which stopped at 3.2 percent increase in shipments (according to data from International Data Corp). Xiaomi also stated that it will start buying up to 1.18 billion of its own shares after the sell-off on the market.

The Chinese company also stated that will be able to manage prolonged component shortages in the coming months and the difficulties resulting from the Russian invasion of Ukraine. However, smartphone shipments to Russia could decrease by three million units in 2022. The situation, according to Xiaomi, will tend to improve significantly in the second half of the year. The company stands at the moment evaluating India as the next production center to expand its presence on the market, also thanks to the expansion of the range of premium smartphones. Currently, in China, Xiaomi has started investing in the electric car market, hiring automotive engineers and investing in self-driving startups, and is building a factory in Beijing with a view to mass production of Xiaomi electric cars in 2024.