A Chinese securities filing has revealed that Chinese smartphone maker Xiaomi made a profit of 347.48 million Chinese Yuan ($56.15 million) on revenues of 26.58 billion Yuan ($4.3 billion), Reuters reports. Interestingly, this is about one-tenth of the earnings and profits that the Wall Street Journal reported last month. Also Read - RedmiBook Pro, RedmiBook e-Learning Edition launch in India, start at Rs 41,999Also Read - Massive Rs 2,000 flat discount on Xiaomi Mi 11X: Check the mouth-watering deal on Amazon
Reuters report is based on the financial results that were disclosed by Xiaomi when it bought 1.3 percent of stake in home appliance maker Midea for $205 million. The filing further revealed that chairman and chief executive Lei Jun owned 77.8 percent of the company, while the rest was owned by unnamed shareholders. Also Read - Xiaomi RedmiBook laptops launching later today: Livestream details, expected prices, etc
As mentioned above, these numbers are not in line with the WSJ report from last month. The publication had confidential bank documents that claimed Xiaomi had earned 3.46 billion Yuan ($566 million) on revenues of 27 billion Yuan. It further claimed that Xiaomi’s net profit nearly doubled last year, making it a lucrative business in an industry where most players selling cheap handsets struggle to break even.
Though the company is outselling the likes of Apple and Samsung in China, the filing shows that it still lags behind the big companies in terms of revenue and profits. To put Xiaomi s numbers into perspective, Apple made $27.3 billion in China in the same period, which is nearly six times that of Xiaomi.
The Chinese company has had a roller coaster of a ride this past year. First it became the third-largest smartphone company in the world behind Samsung and Apple, only to be overtaken once Lenovo completed its acquisition of Motorola. In India, which the company considers to be the second-biggest market after China, it has had to temporarily suspend operations. This comes after the Delhi High Court passed an order in conjunction with the patent infringement claims by Ericsson.