Chinese manufacturer Xiaomi cited a resilient business model for a better-than-expected performance in Q2, despite challenges of Covid-19 (coronavirus) on the smartphone market.

In a statement, the company said revenue from the smartphone segment reached CNY31.6 billion ($4.6 billion) down slightly from CNY32 billion in Q2 2019, while smartphone shipments reached 28.3 million.

Revenue hit CNY53.5 billion, up 3.1 per cent year-on-year, boosted by global TV shipments and a growing advertising business.

Net profit fell 7.2 per cent to CNY3.4 billion.

Smartphone recovery
Xiaomi pointed to smartphone figures from Canalys, which placed it at fourth spot globally in terms of shipments, with a market share of 10.1 per cent.

The company noted shipments of its premium-oriented smartphones, with a retail price of more than €300 ($354.61), in overseas markets increased 99.2 per cent.

Europe was a particular sweet spot, with shipments growing 64.9 per cent, offsetting a decline in India.

It also said its smartphone ASP increased 11.8 per cent, driven by a higher proportion of mid- to high-tier sales.

In particular, the company put its success down to the Mi10, Mi10 Pro and Mi 10 Ultra, stating sales exceeded CNY400 million “after ten minutes of its debut”.

It added the pandemic impacted its global operations to “varying degrees”, particularly in April and May, with sales greatly affected.

“As business restrictions were gradually lifted, sales have recovered tangibly,” the company said.