Xioami is engaged in an intense battle with older rival Samsung and relatively newer ones including Oppo and Vivo to retain its dominant market position. This gains great significance for the company even as it weathers decently the slowdown in Chinese smartphone market.
Less than two months after India’s top smartphone brand Xiaomi secured Rs 1,500 crore from its Singapore entity, the India business has received another infusion of Rs 2,000 crore from the holding company. The brand is engaged in an intense battle with older rival Samsung and relatively newer ones including Oppo and Vivo to continue with its dominant market position. This gains great significance for the company even as it weathers decently the slowdown in Chinese smartphone market.
Xiaomi occupied 28.9 per cent of the smartphone market in India in the year 2018 followed by 22.4 per cent share held by Samsung, 14.2 share by Vivo and 10.2 per cent by Oppo, as per the data released by International Data Corporation recently.
Xiaomi Singapore was allotted “6,959 equity shares of Rs 10 each at an issue price of Rs 28.73 lakh per share aggregating to Rs 2,000 crore on right issue basis,” showed regulatory filing sourced by business signals platform Paper.vc.
The smartphone market in India grew from 124.3 million units’ shipment in 2017 to 142.3 million units last year, as per IDC data.
Xiaomi has recently announced its foray into the online payments space with the launch of Mi Pay (for making payments, fund transferring, paying bills etc) to take on existing market leaders including Paytm, PhonePe and Google Pay.
“We have introduced our innovative MiPay service for our consumers in India. MiPay serves as the ultimate solution to a variety of consumer payment needs, hence empowering millions of Xiaomi users with access to digital payments. Thus, acting as an equaliser providing a seamless experience across all smartphones,” PTI quoted Xiaomi India Chief Operating Officer Muralikrishnan B as saying.
Xiaomi beat its quarterly profit estimates on the back strong performance in the Indian market and selling expensive phones in Western Europe. However its shares fell due to revenue not meeting the expectations, Reuters reported.
Its fourth-quarter net profit more than tripled to $275.6 million) even as it could get only around 60 per cent of its total revenue last year from China vis-a-vis 72 per cent in 2017.
Also, its China shipments for the quarter dropped by more than a third to 10.3 million smartphones from a year earlier, showed IDC data.