The most recent news that follows Xiaomi is the company reporting its Financials for the second quarter of 2019. The smartphone manufacturer has reported slower growth when compared with the last quarter. This comes as a direct consequence of Huawei grabbing a huge chunk of the company’s market share that was present in China –with this taking place over the course of the past few months.
Xiaomi has posted 15% growth in revenue for this year in Q2. This is much slower than what was initially estimated by analysts when taking into consideration the case for the company. It saw its review grow from 45.24 billion yuan to 51.95 billion yuan. In comparison to these numbers, the company’s revenue grew by a much impressive number in the first half of 2019: with a growth of 27 percent.
The difficult situation that the company has been in recent times is as a result of various factors. The smartphone market which is based in and around China is in a slump, while Huawei has seen a quite significant rise in the domestic Chinese market. Purchase of Huawei equipment is seen as a patriotic move – in wake of the trade war that is going on between both the US and China.
The numbers also come in favor of the above claims. Recent reports have gone on to indicate that Huawei and the company’s Honor brand saw its market share increase in China in Q2 2019 to 37 percent – coming from 27.4 percent that was seen just last year. These impressive numbers have had severe consequences on other local manufacturers – including Xiaomi.
Even more worrying for Xiaomi is the fact that the company’s net income fell by a massive 87% to 1.96 billion yuan. However, it isn’t all bad news as the company did actually managed to post a decent 3.64 billion yuan adjusted profit. The shipments in the last quarter amounted to 32 million.