(Yicai Global) May 21 -- China's Xiaomi has reversed its path to become a profitable smartphone and home appliance maker in the first quarter of this year due to strong growth in phone sales and online-connected devices amid a lackluster handset market.
Xiaomi posted a net income of CNY3.2 billion (USD461 million) in the three months, while last year that figure was CNY7 billion negative, according to the Beijing-based firm's earnings report released yesterday.
The company fought against the global downturn -- Samsung Electronics and Apple both logged declining shipments in the first quarter -- by going upscale. Xiaomi increased the revenue of its core smartphone business by 16 percent, selling 27.9 million units globally, and hiking prices by 30 percent in China and 12 percent abroad.
XIaomi's total revenue rose 27 percent to CNY43.8 billion. However, the pace of quarterly growth decreased by 1.5 percent. Its gross profit climbed 21 percent to CNY5.2 billion. The clip of increase fell 7.9 percent over the previous quarter.
The firm's Internet of Things devices, including air purifiers and wearables, made up nearly 30 percent of the total revenue with a tally of CNY12 billion, rising by over one-half from the previous year. Among these, smart TVs have proven particularly popular as their shipments doubled to 2.6 million units.
Internet services, including gaming and advertising, made up a fraction of Xiaomi's operating income, yet rising 31 percent from a year ago.
Xiaomi's share price [HKG:01810] fell 2.7 percent to HKD9.9 (USD1.30) yesterday, marking a market cap of HKD248.1 billion (USD31.6 billion).
Editor: Emmi Laine