Xiaomi Slides After Internet Services Slowdown Mars Sales Surge
- It got more than half revenue from abroad for the first time
- Xiaomi is grabbing market share as U.S. sanctions hit Huawei
Xiaomi is on track to keep expanding its market share.
Photographer: Toru Hanai/BloombergXiaomi Corp. fell as much as 4.2% Wednesday after disclosing internet services revenue grew at its slowest pace in three years, prodding investors to cash in gains from the Chinese smartphone maker’s 2020 rally.
China’s No. 2 smartphone maker reported overall revenue rose 34.5% to 72.2 billion yuan ($11 billion) in the September quarter, its fastest pace of growth in two years. It grabbed market share from Huawei Technologies Co. when American sanctions deepened particularly in overseas markets from Europe to India, which yielded more than half of its revenue for the first time. But internet services like music and video grew just 8.7%, down from the previous quarter’s 29% as the Covid-19 boom in Chinese online activity tapered off.