{"id":12392,"date":"2018-08-22T15:24:17","date_gmt":"2018-08-22T15:24:17","guid":{"rendered":"http:\/\/qatar-news.org\/qatarnewsEn\/?p=12392"},"modified":"2018-08-22T15:24:17","modified_gmt":"2018-08-22T15:24:17","slug":"xiaomi-posts-2-billion-profit-in-first-earnings-report-since-ipo","status":"publish","type":"post","link":"https:\/\/qatar-news.org\/qatarnewsEn\/?p=12392","title":{"rendered":"Xiaomi posts $2 billion profit in first earnings report since IPO"},"content":{"rendered":"
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\"Can\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Xiaomi has posted a bumper profit in its first earnings report since going public last month<\/a>.<\/h2>\n

The Chinese smartphone maker said Wednesday it made 14.6 billion yuan ($2.1 billion) in the three months to June 30, beating industry estimates. Revenue grew 68% compared to the same period last year to 45.2 billion yuan ($6.6 billion). <\/p>\n

Xiaomi stock closed up 1.6% in Hong Kong on Wednesday, ahead of the earnings report. The company went public in Hong Kong<\/a> in July after raising $4.7 billion in the world’s biggest tech IPO since Alibaba’s<\/span> (BABA<\/a><\/span>)<\/span> New York listing<\/a> in 2014. <\/p>\n

The upbeat earnings come despite doubts over the company’s long-term business model.<\/a> <\/p>\n

Xiaomi is trying to position itself as an internet company, asserting that it’s more than just a hardware maker because of the services it offers with its devices, such as music and video streaming apps. <\/p>\n

But internet services revenue grew at a slower pace than overall revenue in the quarter, and at 4 billion yuan ($584 million) accounted for about 9% of the total. Apple<\/span> (AAPL<\/a><\/span>)<\/span>, by comparison, reported $9.55 billion in software and services revenue last quarter, about 20% of its total revenue. <\/p>\n

\"xiaomi
A Xiaomi store in Hong Kong.<\/figcaption><\/figure>\n

Xiaomi has aggressively pushed into markets outside of China. <\/p>\n

It now rivals Samsung<\/span> (SSNLF<\/a><\/span>)<\/span> as the number one smartphone seller in India<\/a>. Sales are healthy elsewhere in Asia, and it’s competing strongly in European countries like Spain and Greece<\/a>. <\/p>\n

But luring customers into using internet services outside China has been a challenge. <\/p>\n

“We don’t see many people getting a Xiaomi phone because they want to use Xiaomi’s internet services,” said Kiranjeet Kaur, an analyst with research firm IDC. “Outside of China, there are a lot of options.” <\/p>\n

The struggle underlines analysts’ concerns that Xiaomi can successfully diversify away from smartphones, which is a very low margin business for the company. Although Xiaomi sells a lot of phones in places like India and Southeast Asia, most of them are cheap models that cost under $100. <\/p>\n

Xiaomi also announced last year that it would cap smartphone profit margins at 5%. <\/p>\n

CNNMoney (Hong Kong) <\/span> First published August 22, 2018: 7:00 AM ET<\/span> <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Xiaomi has posted a bumper profit in its first earnings report since going public last month. The Chinese smartphone maker said Wednesday it made 14.6 billion yuan ($2.1 billion) in the three months to June 30, beating industry estimates. Revenue grew 68% compared to the same period last year to 45.2 billion yuan ($6.6 billion).…<\/p>\n","protected":false},"author":10,"featured_media":12393,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-12392","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world_news"],"_links":{"self":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/12392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12392"}],"version-history":[{"count":0,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/12392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/media\/12393"}],"wp:attachment":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}