By Mike Robuck
Chinese device vendor Xiaomi highlighted double-digit increases in smartphone revenue and ASP in the final quarter of 2021, despite ongoing global supply shortages which it expects to improve by the second half of this year.
During an earnings call, president Wang Xiang stated Xiaomi registered strong results across all business segments in Q4 and for the full year, and strengthened its position in the premium smartphone market.
Wang noted the company still faces supply challenges but predicted “the situation will change significantly” starting in Q2 and “especially in the second half of 2022”.
During Q4 2021, net profit dropped 72.2 per cent year-on-year to CNY2.4 billion (US$376.7 million), while total revenue grew 21.4 per cent to CNY85.6 billion.
Overseas sales increased 23.4 per cent to CNY41.6 billion.
Smartphone revenue grew 18.4 per cent to CNY42.6 billion, with global shipments up 4.4 per cent to 50.5 million units. The ASP increased 13.3 per cent to CNY1,144.
The smartphone segment accounted for 60 per cent of total revenue.
Citing Canalys figures, Xiaomi stated its smartphone shipments ranked number three globally with a 12.5 per cent share.
CFO Alain Lam noted its global smartphone market share increased from 9.2 per cent to 14.1 per cent between 2019 and 2021, while its share in mainland China achieved a record high of 15.2 per cent in 2021, placing the vendor in third place.
IoT and lifestyle turnover rose 19.1 per cent to CNY25.1 billion, driven by an increase in sales of smart TVs, Xiaomi Pad 5 series tablets and smartwatches.
Internet service revenue increased 17.7 per cent to CNY7.3 billion due to an increase in advertising.
The growth was driven by an 80 per cent rise in overseas revenue to CNY1.6 billion, while mainland China sales increased 7.6 per cent to CNY5.7 billion.
R&D expenses rose 24.1 per cent to CNY3.1 billion and 42.3 per cent to CNY13.2 billion for the full year.
Xiaomi set plans to invest more than CNY100 billion in R&D over the next five years.