In recent years, the Xiaomi Group has emerged as a key player in the smartphone market. It is recognised as the third largest smartphone manufacturer in the world. The company's performance in the 2020 financial year is a perfect illustration of the efforts made by the brand to continue to impose itself in this sector where the competition is considerable. Indeed, over the year as a whole, it has recorded solid results, driven in particular by smartphone sales. Details in the lines to follow.
In the last three months of 2020, global smartphone sales reached 359.6 million units. This figure shows the continued interest of consumers in this type of product, despite the Covid-19 pandemic. The Covid-19 pandemic has clearly not dampened the appetite of users.
Compared to the same period of the previous year, these sales showed a 2% decrease. For its part, the Xiaomi Group sold 43.4 million smartphones in Q4-2020, an increase of 31% year-on-year. This performance put it in third place (behind Apple and Samsung) in the ranking of companies that sold the most smartphones in the last quarter of this year.
Furthermore, the fourth quarter of 2020 was the end of a profitable year for the Chinese group. During this period, its revenue grew by 24.8% compared to Q4-2019. Also, the brand saw its net profit increase by 36.7% in the quarter under review.
Xiaomi Group has unveiled strong results for FY2020. This is a testament to the growth of its business in this year, despite the health crisis that has caused several companies' performance to fall. For example, between January and December, the company's net profit was 13.006 billion yuan (€1.685 billion).
It increased by about 12.8% year-on-year. The same trend was observed in turnover. In the year 2020, the Chinese smartphone giant achieved a turnover of 245.865 billion yuan (31.862 billion euros). This was 19.4% higher than in the previous year.
This development was driven by the good momentum in almost all of the group's sectors. Smartphones played a major role in the increase in the brand's revenues in the financial year 2020. Over the year, it sold 146.4 million units, an increase of 17.5% compared to the year before.
Also, the company estimates that it will have sold 10 million premium smartphones in China and abroad in 2020. For the year as a whole, smartphone revenues rose 24.6% to 152 billion Yuan. They account for about 62% of the group's total revenue.
Meanwhile, home automation (the group's second largest source of revenue) generated 67 billion yuan in revenue in 2020. It accounts for about 27% of the brand's total revenue. In addition, the company says it has registered around 324 million connected objects on its home automation platform. This could mean that households are turning more to connected objects.
The good results of the 2020 financial year have notably enabled Xiaomi to better position itself in relation to its competitors. Overseas sales are estimated at 49.8%. At the end of December, the brand was among the top five mobile phone sellers in 54 of the 100 countries in which the company operates.
In the last quarter of 2020, the Beijing-based company had a 15.3% market share in Europe. This puts it in third place, behind Samsung and Apple. In contrast, in Eastern and Central Europe, Xiaomi is the leader with 24.7% market share. At the end of the quarter, the company had a 10.9% market share in Western Europe.
The dividend is the share of income that is distributed to a company's shareholders. Although the payment of this coupon is common in many companies, there are some that do not yet adhere to this policy. This is the case of the Chinese internet and mobile group Xiaomi.
It is one of the giants in the technology sector that does not yet pay a dividend. On the other hand, the company is present on the stock markets. In particular, the Xiaomi share is prized by investors or traders. In July 2018, the company listed on the Hong Kong Stock Exchange.
In December 2020, the world's third-largest smartphone manufacturer surpassed the $100 billion market capitalisation mark for the first time in its history.
Founded in 2010 and headquartered in Beijing, Xiaomi is a Chinese company whose business is focused on mobile phones and consumer electronics. It also operates in the field of the Internet of Things and the provision of internet services. Also, the group carries out related investment activities.
In addition, the Xiaomi Group's business is divided into four main branches. There is the smartphone segment, which deals with the design and sale of smartphones. Then there is the IoT and lifestyle products branch, which specialises in the marketing of other products for the home such as: smart routers, laptops, smart TVs, etc.
The third segment of the group is Internet services. It provides advertising and value-added Internet services. Finally, the last business line of the company is specialised in hardware repair services.