Q4 2018: Xiaomi's smartphone division sees 28% drop in revenue

A new report has thrown light on the state of Xiaomi’s business for the fourth quarter of 2018. The company’s numbers are mostly mixed, as, while it managed to surpass its projected estimates for the quarter, it still saw a drop in revenue across the board.

Total profits for the quarter was a handsome US$275.6 million, quite a bit above the expected US$253.9 million figure. While profits exceeded projected numbers, revenue was a different figure, as the company apparently pulled in US$6.63 billion, short of the expected US$7.08 billion. 

Revenue from smartphone sales also declined, with the company making US$3.73 billion, a heavy drop from the US$5.23 billion it made in Q3 2018. A third of that figure was from sales of devices around US$300—about expected, considering Xiaomi is the king of the budget and mid-range segments. For some perspective, the average selling price of a Xiaomi device in 2018 was US$143.

Total revenue for 2018 was a healthy US$26.12 billion, while net profit tallied in at US$1.28 billion. Smartphone sales accounted for two-thirds of the company’s revenue in Q4, sales of other hardware made for a quarter, and internet services generated the rest of the sum.