Jun Lei: Xiaomi Vows to Become No. 1 Smartphone Player in Europe

Despite political uncertainties and the pandemic, the company will continue to work hard and invest in Europe, the CEO said.
Shirley TianOct 16,2020,14:34

Founder and CEO of Xiaomi (HKEX: 1810), Jun Lei, told China News that the company will expand its presence in Europe over the next three to five years and eventually plans to become the largest smartphone provider in Europe.

“Over the past ten years, Xiaomi has made incredible progress,” Lei said. “For the next ten years, Xiaomi will still focus on the China domestic market while at the same time expand globally.”

Despite political uncertainties and the pandemic, the company will continue to work hard and invest in Europe, Lei added.

Currently, the Chinese smartphone maker Xiaomi Corp. (HK: 1810) ranks third in Europe, with a presence mostly in France and Spain, in terms of smartphone market shares. In Europe, Xiaomi's smartphone shipments soared 64.9% in the second quarter, according to the company’s latest earnings report.

Thanks to "explosive growth" in Europe, Xiaomi’s adjusted net profit in the quarter ending June hit 3.37 billion yuan, well ahead of the average estimate of 2.23 billion yuan, according to data from Refinitiv.

The Chinese smartphone giant said its revenue came in at 53.54 billion yuan ($7.78 billion), up 3% year-over-year. Sales of premium phones in the overseas market shot up 99% from the same period last year, while average selling prices were 12% higher.

Xiaomi also retained its No.1 position in the Indian smartphone market for the 12th straight quarter, controlling 31% of the share in terms of shipments.

In addition to its giant smartphone business, Xiaomi makes dozens of internet-connected home appliances and gadgets, including scooters, air purifiers and rice cookers. Its collection of products has led many Chinese consumers to become dedicated followers, or known as "mi fans".

Brokerages Bocom, Morgan Stanley, CICC and Citigroup, have all raised their price targets on Xiaomi.

Xiaomi's shares closed at HK$22.45 per share Thursday in Hong Kong, more than doubled year-to-date.

Topics:Smartphone
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