Xiaomi Turns Profit in EV Business Amid Phone Market Struggles
Xiaomi Corp. (XIACF) has reported its first quarterly profit from its electric vehicle division, marking a significant turnaround from previous losses. The EV unit generated ¥700,000 in Q3 2024, reversing a ¥300 million deficit in Q2. This contributed to a group net profit of ¥12.3 billion, surpassing analyst expectations of ¥9.6 billion.
The company's stock has declined approximately 20% since May, pressured by rising semiconductor costs and sluggish smartphone sales. Xiaomi continues to battle for market share in China's competitive phone sector, where Apple's iPhone captured 25% of sales last month according to Counterpoint Research.
Xiaomi's EV ambitions are gaining traction, with October deliveries matching September's 40,000 units. The tech firm targets 350,000 vehicle sales in 2024 following its recent entry into the automotive market.
