Xiaomi in its earnings call on Wednesday says that the consumer demand for smartphones in India is increasing. The company report revenues of CNY 49.7 billion for its first quarter while its gross profits increasing almost 44.9%.
Xiaomi says that its smartphone segment generates revenue of 30.3 billion representing a 12.3% YoY growth while its smartphone shipments reaching 29.2 million units. The company said that its overseas revenue increased by 47.8% to CNY 24.8 billion and accounts for half of its total revenue.
Wang Xiang, president and acting CFO of Xiaomi said in the earnings call that the company delivering solid products in spite of challenging environments worldwide. Xiang says that Xiaomi’s global smartphone shipment increasing in the first quarter while the global smartphone market is decreasing by 13%.
“In India, for example, the strict lockdown measures imposed in late March significantly impacted sales,” Xiang said in the earnings call. “Since the start of May, India has begun to lift the restrictions on production and sales activities in phases. What we are seeing is that an area where sales have resumed, consumer demand has rebounded in a similar fashion in mainland China.”
The government of India initially enabled e-commerce companies to deliver products in the Green and Orange Zones beginning May 4 while deliveries to Red Zones were allowed from May 18. Xiaomi on May 18 resumed deliveries across India except to those users in the Containment Zones.
Xiang said that the smartphone activations as of the third week of May have rebounded to 90% of the pre-pandemic level in Europe. While the smartphone activations in Southeast Asia and Middle East have “surpassed the pre-pandemic level,” India is said to be around 60% of the pre-pandemic levels. Smartphone Market In India seems dooming due to lockdown but Xiaomi is increasing.