The manufacturer of smartphones, Xiaomi Corp. (1810. HK), reported a third-quarter net income increase that exceeded forecasts on Monday. Revenue exceeded projections due to flat device shipments, which outpaced the overall market.
The company topped an average forecast of 70.2 billion yuan from 13 experts surveyed by LSEG, with sales for the period totaling 70.9 billion yuan ($9.83 billion).
Thanks to reduced component prices and increased company efficiencies, net income increased by 183% yearly to 6 billion yuan from a consensus forecast of 4.6 billion yuan.
“The accomplishments we were able to make show an improvement in our overall capabilities, even though we did not encounter many positive external factors,” Xiaomi President Lu Weibing stated during a teleconference for earnings.
According to industry research firm Canalys, Xiaomi, the country’s fifth-largest smartphone brand, shipped 9.1 million units in China in the most recent quarter.
Xiaomi surpassed its peers even though there was no change from a year ago, with industry sales declining 5% annually, according to Canalys.
Demand has been steadily declining in the largest smartphone market globally as consumers have been waiting longer to upgrade their phones due to the COVID-19 outbreak and a sluggish economy.
However, some encouraging indicators have been seen, such as Xiaomi selling over a million of its most recent flagship smartphones in the first week after their release.
Investors in Xiaomi are also watching for indications of development in its recently established electric vehicle sector.
In a hint that manufacturing may soon begin, a Beijing-based manufacturer, BAIC Group, applied to regulators last week to obtain permission to produce two models of electric vehicles under the Xiaomi brand.
During the earnings call, Lu from Xiaomi reiterated the company’s objective of producing cars on a large scale in the first half of 2024. He also indicated that the company will continue to invest in the vehicle sector, with 3,000 people working on car-related R&D by the end of September.