Xiaomi's smartphone business grew massively last year, especially in Europe

Xiaomi's smartphone business grew massively last year, especially in Europe
Xiaomi Mi Mix 3

Despite proving to be a pretty tough year for smartphone sales – the global market grew just 0.1% – Xiaomi has today published its 2018 financial results and the numbers are pretty impressive, to say the least. 

As a whole, Xiaomi reported revenues of 174.9 billion yuan ($26.13 billion) for the entire year, representing strong year-over-year growth of 41.3%. Even more impressive was the company’s profit for the period, which grew a whopping 59.5% year-on-year to 8.5 billion yuan ($1.27 billion).

The primary source of this growth was, rather unsurprisingly, the company’s smartphone business. In addition to seeing a rise in the average selling price (ASP) of its devices, Xiaomi’s overall shipments grew a staggering 29.8% throughout 2018 to 118.7 million devices.

Xiaomi's smartphone business grew massively last year, especially in Europe
Xiaomi's smartphone business grew massively last year, especially in Europe

China was once again Xiaomi’s biggest market, accounting for a whopping 60% of all sales. However, the brand’s international expansion is going quite well. Sales outside of China surged 118.1%, with India and Indonesia proving to be big markets for the company. Xiaomi also experienced extremely strong growth in Western Europe, where its sales increased 415.2% over the previous year.

In addition to smartphones, Xiaomi’s other businesses also continued to grow throughout last year, with its IoT and lifestyle products generating a considerable 43.8 billion yuan ($6.53 billion) in revenue.

Moving forward, Xiaomi expects to concentrate on its new dual-brand strategy in the smartphone segment. The company hopes to solidify the Xiaomi brand's presence in the mid-range and high-end smartphone segments, while the newly-independent Redmi will focus on the budget market. The likes of Black Shark and POCO will also cater towards more niche markets.

FEATURED VIDEO

4 Comments

1. Kuroki

Posts: 183; Member since: Nov 24, 2013

Xiaomi: smartphone business grew massively last year, especially in Europe US gov't: SPIES! I'm from the future.

2. alanrock

Posts: 245; Member since: Oct 04, 2018

next "public enemy" for sure...

3. almostdone

Posts: 423; Member since: Sep 25, 2012

Xiaomi phones are great and at reasonable prices. It proves you don't have to make huge margins per device. I can see a long term decline for Apple and to some extent Samsung. Samsung's advantage they produce so many components for smartphones they don't care who is successful as it will have "Samsung inside".

4. midan

Posts: 2557; Member since: Oct 09, 2017

"Samsung's advantage they produce so many components for smartphones they don't care who is successful as it will have "Samsung inside"" Looks like you missedthisarticlehttps://www.phonearena.com/news/Samsung-sees-tough-2019-for-smartphone-components_id114653 "The executive said that a weak smartphone market will eat into sales of memory chips and other components that it sells to other manufacturers. " By the way Apple strenght is that they make money from their users years after they actually bought the device. Ne t week they announce that video service which going to be another money maker for Apple.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.