Xiaomi’s Revenue Growth and Smartphone Sales exceeded expectations with a 27% year-over-year increase in the first quarter of 2024, driven by a 33% jump in smartphone sales, reflecting a global recovery in handset shipments.

The company’s total revenue reached 75.5 billion yuan (US$10.5 billion) during the quarter, exceeding the 73.5 billion yuan analysts had anticipated. Smartphone sales, which account for nearly 62% of Xiaomi’s revenue, soared to 46.5 billion yuan. However, total profits dipped slightly by 1%.

Despite the earnings announcement, Xiaomi’s share price closed down over 2.5% on Thursday, trading at HK$18.94.

Xiaomi’s Revenue Growth and Smartphone Sales continue to drive its aggressive pursuit of electric vehicle (EV) ambitions. Recently, the company hired Wang Naiyan, the former technology chief of Chinese self-driving truck company TuSimple. Wang will report directly to Xiaomi’s autonomous driving head, Ye Hangjun.

Xiaomi maintained its position as the world’s third-largest smartphone vendor in Q1, capturing a 14% market share with global shipments exceeding 40 million units, according to IDC data. However, IDC figures also show that Xiaomi lost its place among the top five smartphone vendors in mainland China. This decline coincides with a strong comeback by Huawei, fueled by their 5G-capable Mate 60 series smartphones. Overall, smartphone shipments in China grew by 6.5% during the quarter.