Bigger rival Huawei reported an annual profit increase of 5.6 percent on Tuesday, its smallest rise in three years.
Xiaomi's sales in Q4 jumped to CNY 56.5 billion from CNY 44.42 billion year-over-year
Chinese smartphone maker Xiaomi said on Tuesday that it was already seeing signs of a strong recovery in sales in China as the country begins to return to normal following the lockdown due to the coronavirus.
"The (Chinese) market has entered a full recovery stage, and the market has already recovered to 80 to 90 percent of the normal level," CFO Shou Zi Chew said on an earnings call.
He said sales in China fell in the first quarter due to the economic impact of the virus, but did not say by how much.
Chew said he expected demand for smartphones to be resilient globally even though the coronavirus was spreading to other countries. The company will take a hit in global sales during March and April, he said, but he expects to see signs of recovery in May.
"If we take reference from China's experience, I think smartphone demand is resilient," said Chew. "It is a daily necessity in life. I think it will rebound quickly."
Xiaomi reported on Tuesday a 27 percent jump in revenue for October-December 2019, above analyst expectations.
Sales in the fourth quarter jumped to CNY 56.5 billion ($8 billion) from CNY 44.42 billion in the same quarter a year earlier. That beat analyst expectations of CNY 55.6 billion, according to Refinitiv data.
The company derives roughly 60 percent of its revenue selling mobile handsets and also sells online ads and other types of consumer hardware.
Revenue from the smartphones' segment jumped 23 percent in the fourth quarter to CNY 30.8 billion.
Excluding one-time items, Xiaomi earned CNY 2.34 billion in the fourth quarter, above analysts' estimate of CNY 1.88 billion. For the whole year, Xiaomi's profit attributable to shareholders fell by a fourth to CNY 10.04 billion.
Bigger rival Huawei reported an annual profit increase of 5.6 percent on Tuesday, its smallest rise in three years, hurt by weak overseas sales amid an intensifying US campaign to restrict its global expansion due to security concerns.
Overseas expansion has been a key strategy for Xiaomi in the past few years, along with its Chinese rivals, as the domestic smartphone market endured a period of contraction.
© Thomson Reuters 2020
For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.