Eric Zeman / Android Authority
- Xiaomi had a stellar 2020, with profits up over 28% and more than 10 million “premium” phones sold.
- Its television business also dominated mainland China.
- The company’s success came in part from converts from Huawei.
It’s no secret that Xiaomi had a banner year in 2020, but it’s now clear just how fast the company has grown. Xiaomi has reported “stellar” results for 2020, helped in large part by strong phone sales – and likely the downfall of arch-rival Huawei.
The company’s profit jumped 28.7% in 2020 to RMB36.8 billion (about $5.6 billion) on the back of a 19.4% increase in gross revenue to RMB245.9 billion. ($37.7 billion). Phone sales played a huge role, Xiaomi said. The company has sold around 10 million “premium” phones, or devices costing more than 3,000 RMB ($460). He didn’t say how many budget Redmi phones were sold, but it’s safe to assume there was high demand.
Read more: The best Xiaomi phones you can buy
International expansion and show efforts also helped the Chinese tech giant’s results. Overseas revenue jumped 34.1% in 2020, and Xiaomi led Chinese TV shipments as well as domestic sales of 70-inch-plus devices. Xiaomi’s shipments put it in the top five globally.
Chances are some of that success came from Huawei’s decline. The US trade ban hampered Huawei’s business in 2020, with China’s market share dropping from 41% at the start of the year to “only” 30% at the end, according to Counterpoint. Xiaomi’s share rose a more modest two points to 13% at the end of this year, but it was a significant achievement when even heavyweight brands like Oppo and Vivo struggled to make headway.
It’s unclear exactly how the business will fare in 2021, although there are reasons to suggest it will thrive. Flagship phones like the Mi 11 are expected to boost sales for Xiaomi, and Huawei could easily continue its plunge as it lacks high-end chips and sees the full effects of selling the Honor badge. There’s plenty of room to grow, and it may just be a question of how well Xiaomi capitalizes on this opportunity.