Xiaomi's Q1 Sales Soar 54% Amid US Huawei Sanctions

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Chinese smartphone manufacturer Xiaomi's first-quarter sales increased by 54.7% year-on-year due to the impact of U.S. sanctions on Huawei.

According to major foreign media on the 27th, Xiaomi's first-quarter sales amounted to 76.88 billion yuan, a significant increase compared to 49.7 billion yuan in the same period last year.

This figure also greatly exceeded the market forecast of 74.1 billion yuan. Foreign media analyzed that this was the result of capturing some of the market share from Huawei, which was once the industry leader.

During the same period, net profit was 6.07 billion yuan, about 1.5 times the market forecast of 3.97 billion yuan.

Xiaomi's strong performance is attributed to benefiting from smartphone sales following the U.S. government's sanctions on Huawei. Smartphone sales increased by 69.8% year-on-year.

China's smartphone market share increased by 75% compared to the same period last year, and Xiaomi rose to become the third-largest company in the global smartphone market, following Apple and Samsung Electronics.

The U.S. Department of Defense added nine Chinese companies, including Xiaomi, to the blacklist on January 14, just before the end of then-President Donald Trump's term.

When Xiaomi filed a lawsuit in a U.S. court to cancel its blacklist designation, the local court issued a temporary injunction in March to exclude Xiaomi. A formal ruling was then made on the 25th.

This content was produced with the assistance of AI translation services.