Chinese technology company Xiaomi announced a significant increase in sales in the first three months of the year attributed to a strong surge in smartphone purchases.
The company, ranked third globally in smartphone production, revealed that first-quarter sales rose by 27% compared to the same period last year, reaching $10.4 billion (75.5 billion yuan).
In March, Xiaomi introduced its first electric car, the SU7 sedan, to the competitive local market.
Xiaomi’s aim is to reach 120,000 sales of the SU7 electric car within this year, with expectations for the model to compete with Tesla Inc and contribute to its broader strategic goals. This target reflects a 20% increase from the initial estimate of 100,000 vehicles.
In its financial report released on Thursday, Xiaomi stated, “As of April 30, 2024, the confirmed total number of orders for the Xiaomi SU7 Series reached 88,063,” and added that it had completed the delivery of 10,000 vehicles by mid-May.
Lu, in an interview with journalists, noted Xiaomi’s progress towards delivering 10,000 SU7s in June – equal to the amount sold in the first 43 days – indicating the company’s potential to achieve its annual target of 120,000 units.
While Xiaomi has entered the electric car sector, the traditional smartphone segment continues to be the primary contributor to sales growth, generating revenue of 46.5 billion yuan, up 32.9% from the previous year in the first quarter.
The company, listed on the Hong Kong stock exchange, also recorded an increase of over 25% in research and development expenses in the first quarter, primarily due to “increased spending on our smart electric vehicle initiative and other new projects.”
Xiaomi’s stock price fell by 2.5% during trading on the Hong Kong exchange.
Source: investing.com
