Xiaomi swings back into profit

Agencies and staff reporter

Xiaomi (1810) swung to a net profit of 4.87 billion yuan (HK$5.42 billion) in the third quarter as the smartphone maker posted its first revenue gain in almost two years.

The latest quarterly profit figure is compared with a net loss of 1.48 billion yuan during the same period last year.

Xiaomi's revenue rose 0.6 percent to 70.9 billion yuan for the September quarter - marking the first increase after six quarters. That also beat an average estimate of 70.2 billion yuan from analysts.

The adjusted profit for the quarter surged 183 percent to 5.99 billion yuan thanks to lower component costs and operating efficiencies across the business. The figure beat a consensus estimate of 4.6 billion yuan.

The smartphone maker is hopeful that global phone shipments will jump during the holiday quarter on a full-year basis. Shipments should bounce back in 2024, Xiaomi said.

Xiaomi is emerging from a years-long funk, when global demand for smartphones and other electronics cratered and rivals from Huawei Technologies to Apple and Oppo encroached on its once-dominant position. But the recent launch of a well-received line of flagship Xiaomi 14 phones could rejuvenate growth during the holidays in China, despite an uncertain consumer economy.

There are growing signs the global smartphone market may finally be climbing out of a trough. Xiaomi and Huawei led an 11 percent jump in October smartphone sales in China.