Chinese Smartphone manufacturer Xiaomi sales growth has slowed slightly.
Xiaomi, a listed company on the Hong Kong Stock Exchange, released a statement in its earnings data released after the close of the market on Tuesday. It stated that its second-quarter sales reached RMB51.95 billion, up 14.8 percent from the same period last year.
After the adjustment, net profit came to RMB 3.64 billion, up 71.7 percent from the same period last year.
The market is noting that while net profit has increased significantly, sales growth, a measure of growth, has weakened somewhat. Xiaomi’s second-quarter sales growth was down from 22.7 percent in the first quarter.
In particular, there was a clear trend of slowing sales growth in the smartphone sector, a key business area.
Sales of smartphones in the second quarter reached RMB 32.21 billion, up 5 percent from the same period last year. Xiaomi said its second-quarter smartphone shipments came to 32.1 million units.
Compared to second quarter of last year, increase in sales of IoT and internet for business was 44% and 15.7% respectively.
“This is the result of choosing a stable business strategy ahead of explosion of 5G mobile telecommunication markets.” said Xiaomi.
Slight decrease on Xiaomi sales growth after a continuous climb
Since its establishment in 2010, Xiaomi has been growing rapidly with its strategy of selling thin products with excellent price and performance.
According to a market research company called Canalys, Xiaomi ranks fourth in the industry in terms of shipments of smartphones. Its market share expanded slightly from 9.5 percent in the second quarter of last year to 9.7 percent in the second quarter of this year.
Samsung Electronics is focusing on smartphones as its main business. Yet it is steadily increasing its sales in Internet of Things field that connects variety of electronic products. Including as AI speakers, air purifiers, and smart TVs to the Internet.
In July, Xiaomi made its first entry into the Fortune 500 list.
