Chinese tech and home appliance giant Xiaomi announced on Thursday a major jump in sales for the first quarter, on the back of a smartphone boom.
Xiaomi, the world’s third-biggest smartphone maker, said its sales in the first quarter reached $10.4 billion (75.5 billion yuan), up 27 percent from a year ago.
The company launched its first electric vehicle in March, entering a cut-throat domestic market with the SU7 sedan that comes equipped with karaoke equipment and a mini-fridge.
“As of April 30, 2024, the cumulative locked-in orders for the Xiaomi SU7 Series reached 88,063 vehicles,” the company said in its earnings report on Thursday, adding that it had delivered 10,000 cars by mid-May.
But its more traditional smartphone business still accounted for the bulk of sales growth, bringing in 46.5 billion yuan in the first quarter, up 32.9 percent on-year.
The Hong Kong-listed company said its research and development costs for the first quarter were up more than 25 percent on-year, “primarily due to the increase in research and development expenses related to our smart EV business and other new initiatives”.
Many top tech firms in China — the world’s largest auto market — have invested recently in the country’s EV sector, where foreign firms have struggled to get a foothold.
Founded in 2010, Xiaomi has achieved rapid growth through its strategy of marketing high-end devices at affordable prices, initially directly through online channels.
