Chinese smartphone maker Xiaomi Inc. swung to a net profit in the third quarter, beating analyst estimates, amid robust sales in India and Europe, Reuters reports.
Profit for the three months through September reached 2.48 billion yuan (US$357.23 million), against an 11 billion yuan loss in the same period a year earlier, the company said. That compared with an average estimate of 1.92 billion yuan profit by five analysts, according to Refinitiv Eikon.
Xiaomi also said operating profit sank 38.4 percent to 3.59 billion yuan in the quarter. Revenue rose 49.1 percent to 50.85 billion yuan.
The mixed results come amid a slowdown in smartphone purchases both in China, where Xiaomi once was the top-selling handset brand, and overseas.
Nevertheless, Xiaomi, along with fellow low-cost handset makers Oppo and Vivo, accounted for around a quarter of the global smartphone market in the first half of 2018, according to data from researcher IDC.
Xiaomi’s fastest-growing markets are India, where it has had success with its budget Redmi phone series, and Europe, where it entered in 2017 with launches in Russia and Spain. Earlier this month it released its flagship Mi 8 Pro in Britain.
In the third quarter, Xiaomi’s smartphone division grew revenue by 36.1 percent while its internet service division grew 85.5 percent. But phones made up 64.6 percent of total sales, while internet services made up 9.3 percent.
The results are the second set released by Xiaomi since the smartphone maker raised US$4.72 billion in an initial public offering (IPO) in June, valuing the firm at about US$54 billion – around half of some earlier industry estimates of US$100 billion.
The firm has been adding new brands to its smartphone portfolio to target niche consumers. On Monday, Xiaomi also announced a partnership with Meitu Inc., a maker of a photo app popular with young women, to sell phones under its brand.
Earlier this year it launched Black Shark, a phone targeted at gamers, and Poco, a value-for-money device aimed at India.
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