Xiaomi posted its fastest pace of revenue growth in the third quarter since its 2018 listing but warned of a ‘supply chain shortage.’
The buybacks of Xiaomi shares come during turmoil in Asian markets. The global smartphone market is expected to be severely hit by the coronavirus outbreak.
China, the world’s largest semiconductor market, is highly reliant on foreign technology and aims to make 70% of the chips it uses by 2025.
Xiaomi is selling the idea that smartphones are necessary goods and idemand will bounce back after the pandemic is over.
The company expressed optimism about the upcoming ‘5G era’ for its smartphone business.
Xiaomi is sharpening its focus on the fast-growing premium handset segment as the global smartphone market continues to decline
The coronavirus outbreak has accelerated a downward trend in smartphone sales, though Huawei managed to notch modest annual growth in the quarter.
Total handset sales in China surged by 241% in March compared with February but more than one third of Chinese consumers have delayed new phone purchases.
Research firm IDC estimated in a report released April 30 that Xiaomi’s smartphone shipment volume for Q1 2019 fell 10.2% to 25.0 million units.
Xiaomi is weathering a shrinking smartphone market in China by increasing focus on others such as India and Europe.