On Tuesday, Chinese smartphone company Xiaomi Corp reported its fourth-quarter earnings which surpassed the expectations that had been set by analysts. The smartphone maker reported a growth of 21.4 percent in fourth-quarter revenue amid challenges such as the global chip shortage and the effects of the pandemic, which should have stopped the company from thriving. While the global chip shortage challenge is still raging, the effects of the pandemic are beginning to slowly but gradually fade off and industry shipments of smartphones 9and other consumer electronics) have started to see an upward trend.
In the quarter ended December 31st, the smartphone maker reported revenue of 85.58 billion yuan ($13.45 billion), compared to a year ago which saw revenue of 70.46 billion yuan. The revenue reported by the smartphone giant surpassed the expectation of analysts. According to data from Refinitiv, analysts projected revenue for the fourth-quarter to come in at 81.80 yuan.
According to the company’s statement, its shipment of smartphones increased 4.4 percent to 44.1 million unit in the fourth quarter. Net income also rose 39.6 percent to 4.47 billion and surpassed what analysts had expected.
Last year, the smartphone maker announced its interest to diversify into the autonomous driving space. The announcement came shortly after it overtook Apple to become the world’s second-largest smartphone vendor. Xiaomi acquired DeepMotion, an automated driving startup, as part of its plan to expand into the automobile market.
In September, the company officially registered its electric vehicle unit. The unit which goes under the name Xiaomi EV started with a registered capital of 10 billion yuan, the equivalent of $1.55 billion, according to Xiaomi’s CEO Lei Jun who also mentioned back in September that the unit had already employed 300 people.
Apart from being a top smartphone brand, Xiaomi is looking to become a big name in the electric vehicle space.