Xiaomi's smartphone shipments grew a whopping 88% during Q1 2018

Xiaomi reports smartphone shipment growth of 88% during Q1 2018
Ahead of the company’s initial public offering, Xiaomi has revealed that its smartphone sales grew significantly during the first quarter of 2018, although it has still failed to turn a profit.

The low-cost brand didn’t mention any exact shipment numbers but did confirm that it saw extreme growth of 88% during the first three months of the year. Despite the lack of official numbers, however, Counterpoint Research recently estimated shipments of 28.1 million for the brand during Q1, giving Xiaomi a global market share of 8%. This, alongside the company’s various other divisions, allowed for revenues of $5.3 billion during the period, although Xiaomi’s razor-thin margins and various one-off costs ultimately led to a loss of $1.09 billion for the quarter.

Breaking down the company’s financial results, it was revealed that in contrast to the growth seen by the smartphone business, it’s overall contributions to the company actually declined, with mobile sales accounting for just 67.5% of revenue during the period. For comparison, this number sat at over 70% during 2017. On a separate note, and one that will surely please potential investors ahead of the brand’s IPO, Xiaomi revealed that its online services and smart home products grew to contribute nearly 32% of all revenues, up from 29% during 2017.

Moving forward, Xiaomi plans to use up to 40% of the money raised through its IPO to enter or strengthen the brands positioning within both Europe and South-east Asia, with a huge focus on its smartphones. Unfortunately, when it comes to the US, the company failed to reveal any details. Nevertheless, it has previously stated that it will target carriers heavily in order to guarantee a strong presence upon entry into the market.

source: Bloomberg

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