It reported total revenues of 45.24 billion Yuan (£5.1bn), up from 26.88 billion Yuan (£3 billion) a year earlier, as smartphone sales rose by 58.7 per cent to 30.5 billion Yuan (£3.5bn).
Xiaomi’s success has relied on launching feature-packed smartphones at affordable prices in developing markets.
This has worked well in China, which is not a brand-sensitive market, and increasingly in other countries like India, where it is now the largest manufacturer. Indeed, international revenue for the period rose by 152 per cent.
Xiaomi is the world’s fourth biggest smartphone maker behind Samsung, Huawei and Apple and is one of the few manufacturers to increase market share in recent times. However, competing in the mid-range segment is intense, especially when margins are relatively slim.
Xiaomi wants to expand into the high-end market in its homeland, releasing devices that attract a higher price and a higher margin. Although Apple and Samsung sales are declining, the increased cost of their flagship devices is helping to maintain revenues.
Xiaomi is also looking to expand to Europe. A deal with Three’s parent company CK Hutchison is expected to see the devices sold in Austria, Denmark, Hong Kong, Ireland, Italy, Sweden and the UK.
Connected devices and services are also high on the agenda, with an app store, set top boxes and routers among the possibilities.
The results are Xiaomi’s first since its initial public offering (IPO) in Hong Kong earlier this year.