China's Xiaomi reported 15 per cent growth in quarterly revenue on Tuesday, missing estimates, as fewer people bought smartphones at home and rival Huawei grabbed market share.
The company is weathering a bleak domestic smartphone market as economic growth in China slows and Chinese consumers rally in support of beleaguered rival Huawei. Xiaomi's stock has lost more than a quarter of its value so far this year.
The company's revenue in the second quarter ended June 30 rose to 51.95 billion yuan (Dh27.02bn) from 45.24bn a year earlier. That was short of the 53.52bn expected by analysts, Refinitiv data showed.
Net income slumped 87 per cent to 1.96bn yuan. Still, adjusted profit of 3.64bn yuan beat the 2.74bn expected by analysts.
Xiaomi said total smartphone shipments in the second quarter rose to 32 million.
Huawei's market share in China surged by 31 per cent in the June quarter, according to market research firm Canalys, while Xiaomi's share shrank plunged by a fifth. But Canalys reckons Xiaomi's shipments to Europe surged 48 per cent.
The company, which listed last year, gets the majority of its revenue from mobile handsets but also makes money selling online ads and other consumer devices.
Huawei has received a lot of support from Chinese customers who are buying the company's phones after it was blacklisted by the United States, limiting access to US components and technology.
Xiaomi's internet services unit, which makes money primarily by placing ads across various apps, accounted for 8.8 per cent of its revenue, flat from one year prior.
When Xiaomi listed in July 2018, executives touted the business unit as key to the company's continued growth.
On an earnings call, leaders instead highlighted the company's so-called "AIoT" strategy, short for "Artificial Intelligence of Things," in which it invests in artificial intelligence and smart home devices. The firm has invested in several companies making semiconductors or other key hardware components, trying to emulate the success of Huawei's HiSilicon semiconductor division.
In the second quarter, Xiaomi funded Verisilicon, a Shanghai-based chip design firm. It also invested in Bestechnic, which designs chips for audio devices. Several of the companies in which Xiaomi has invested had recently listed on China's newly-opened STAR market, including scooter-maker Ninebot, which acquired the Segway brand in 2015.
Xiaomi's chief financial officer Chew Shou Zi said the investments stem in part from the company's hopes to build a "Chinese supply chain", while improving its internal research and development abilities.
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
UAE currency: the story behind the money in your pockets
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
PROFILE
Name: Enhance Fitness
Year started: 2018
Based: UAE
Employees: 200
Amount raised: $3m
Investors: Global Ventures and angel investors
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
RESULT
Deportivo La Coruna 2 Barcelona 4
Deportivo: Perez (39'), Colak (63')
Barcelona: Coutinho (6'), Messi (37', 81', 84')
