SHANGHAI: Chinese smartphone maker Xiaomi Corp reported first-quarter revenue growth of 55per cent on Wednesday (May 26), above analyst expectations, as it nabbed market share from one-time market leader Huawei Technologies.
Revenue rose to 76.88 billion yuan (US$12 billion) in the quarter ended Mar 31, from 49.70 billion yuan a year earlier. Analysts expected revenue of 74.5 billion yuan, according to Refinitiv data.
Adjusted net profit rose to 6.1 billion yuan, versus market estimates of 3.97 billion yuan.
Xiaomi's share of the smartphone market in China increased 75per cent year-on-year in the quarter ending late March, according to research firm Canalys, as Huawei retreated from the market following US trade restrictions that crimped its ability to source key components for its handsets.
Revenue from smartphone sales jumped 69.8 per cent year-over-year to 51.5 billion yuan, while revenue from internet services increased 11.4 per cent year-over-year to 6.6 billion yuan.
Despite the revenue growth, Xiaomi and other electronics brands remain hampered by the global chip shortage.
A number of causes such as stockpiling, surging demand for personal computers during COVID-19, and mishaps at factories caused a range of hardware makers to scramble for semiconductors late last year.
Speaking on a call with investors, Xiaomi CFO Alain Lam said that the company's chip inventories remain at "healthy" levels and did not expect major impact on the company's business this year, though the broader shortage may not end until mid-way through 2022.
This quarter Xiaomi also announced it would formally begin producing electric cars, with a new division to be led by Xiaomi founder Lei Jun.
The US government also removed the company from a blacklist that would have barred US-based investors from owning shares in the company, reversing one of former US president Donald Trump's last manoeuvres against China's tech sector before leaving office.