The Chinese technology company Xiaomi reported on Tuesday a double-digit revenue growth in the fourth quarter of 2023, thanks to strong smartphone sales signaling a recovery in the sector.
In the period from October to December, Xiaomi’s revenue increased by 11 percent, reaching 73.24 billion yuan (9.37 billion euros).
Adjusted net profit more than tripled, soaring to 4.9 billion yuan.
Xiaomi shipped 40.7 million smartphones in the last three months of the previous year, 23 percent more than in the same period of 2022, and ranked third in the world with a market share of 13 percent, according to data from researcher Canalys.
– As expected, total smartphone shipments were better in the second half of 2023 than in the first. The trend in the global consumer electronics market continues to show a gradual recovery – said Xiaomi’s president Lu Weibing.
In China, the largest market, the company shipped 9.5 million devices, 12 percent more than at the end of 2022, and ranked fifth, with a market share of 13 percent.
The increasingly saturated market has prompted Xiaomi to expand its business into other sectors. In China, they are also known for home appliances and have entered the electric vehicle market, in line with a plan presented in 2021.
By the end of the month, the company plans to start deliveries in China, through over 59 stores in 29 cities. Market observers expect that prices will be announced at the vehicle presentation scheduled for March 28.
Xiaomi has invested 10 billion yuan in the development of electric vehicles, Lei said, and plans to invest a total of 10 billion dollars in the automotive business over the next ten years.
Last year, their research and development costs increased by 19.2 percent, to 19.1 billion yuan, primarily due to new projects in the electric vehicle business.
