23 May 2024, 17:44

China's Xiaomi reports sales spike in first quarter

SHANGHAI, May 23, 2024 (BSS/AFP) - Chinese tech and home appliance giant 
Xiaomi announced on Thursday a major jump in sales for the first quarter, on 
the back of a smartphone boom.

Xiaomi, the world's third-biggest smartphone maker, said its sales in the 
first quarter reached $10.4 billion (75.5 billion yuan), up 27 percent from a 
year ago.

The company launched its first electric vehicle in March, entering a cut-
throat domestic market with the SU7 sedan that comes equipped with karaoke 
equipment and a mini-fridge.

"As of April 30, 2024, the cumulative locked-in orders for the Xiaomi SU7 
Series reached 88,063 vehicles," the company said in its earnings report on 
Thursday, adding that it had delivered 10,000 cars by mid-May.

But its more traditional smartphone business still accounted for the bulk of 
sales growth, bringing in 46.5 billion yuan in the first quarter, up 32.9 
percent on-year.

The Hong Kong-listed company said its research and development costs for the 
first quarter were up more than 25 percent on-year, "primarily due to the 
increase in research and development expenses related to our smart EV 
business and other new initiatives".

Many top tech firms in China -- the world's largest auto market -- have 
invested recently in the country's EV sector, where foreign firms have 
struggled to get a foothold.

Founded in 2010, Xiaomi has achieved rapid growth through its strategy of 
marketing high-end devices at affordable prices, initially directly through 
online channels.

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