Chinese device maker Xiaomi has reported a profitable second quarter following its IPO.
The company saw strong growth from its smartphone unit, reporting a revenue increase of 58.7% year-on-year to CNY30.5 billion ($4.5 billion). It noted that while it was shipping more devices, a higher average selling price was a significant factor in this.
This was particularly true in China, where the increasing popularity of higher end devices has caused ASPs to rise by around 25%. Xiaomi noted that the market is undergoing “a period of recalibration” that will “lay the groundwork for further shipment growth in China in 2019”.
Xiaomi also strengthened its presence across Asia, particularly in the high-growth markets of India and Indonesia. According to data from Counterpoint Research, Q2 smartphone shipments rose by 25% year-on year in Indonesia, with Xiaomi taking second place from Oppo with a 22% share of the market – behind only Samsung’s 25%.
Chinese manufacturers still hold the majority of the market (53%), while Indonesian vendors account for 9%. Growth has recovered after slowing in Q2 2017 to accommodate new laws to encourage local manufacturing.
According to Tarun Pathak, associate director at Counterpoint Research, Indonesia’s smartphone market is on track to pass 100 million users this year, with the replacement rate rising as users abandon more basic models in favour of more full-featured mid-priced devices. The $100-$150 price bracket is the country’s fastest growing.