Xiaomi beats profits estimates, a bold sign for electric vehicle project dream
Xiaomi Corp. reported a better than predicted quarterly profit by making the most of brisk sales in the holiday period when its shipment of smartphones rose by almost four per cent. While the issue pertaining to chip shortage may have appeared as a big challenge, the jump in adjusted net income of around 40% to approximately $702 million in the last three months of 2021 will help the consumer electronics brand play even bigger even as its co-founder gives shape to the company's electric vehicle (EV) ambitions.
Xiaomi is the world's third largest smartphone manufacturer and is upping the pace with many predicted a very serious foray into the premium smartphone segment. After all, updates to the cameras and feature lists in its new offerings helped Xiaomi gain more acceptance recently. But there is room for the taking in the premium smartphone segment, say many, much like how there's an open field in the world of EVs.
Xiaomi's billionaire co-founder Lei Jun is leading the charge to help the consumer electronics brand become a force of reckoning in the EV world - both in China and elsewhere. Much has already been said about the $10 billion push to find a footing and gain wings in the lucrative EV market. China is the world's largest automobile as well as EV market but faster adoption elsehwhere means the playfield is quite level even if the likes of Tesla, Volkswagen, Mercedes, Hyundai and BMW are making power moves.
Jun has already confirmed he is looking at mass-producing Xiaomi EVs by 2024 and the company has hired automotive engineers and invested in auto-driving startups. Its factory for EVs is under construction in Beijing.
As such, a solid showing in the core business of selling EVs will further bolster confidence of Xiaomi digging in deep in the world of battery-powered automobiles.
(With inputs from Bloomberg)