Xiaomi: It will soon become the third leading manufacturer of Smartphones replacing Apple

Xiaomi's performance in the first half of 2020 exceeded analysts' expectations.

ΌAs we have already reported, even under the difficulties in the markets due to the pandemic, Xiaomi managed to record sales, which was facilitated by the increase in the average price of smartphones.

Following the release of the quarterly report yesterday, Xiaomi's share price reached $ 2,79. That is, it increased by 13% and recorded a new higher price since July 2018. In addition, the total market value of the company is now around $ 65 billion.

Its analysts Goldman Sachs, CITIC Securities, Founder Securities, CICC, Daiwa, Morgan Stanley and Citibank published new research reports yesterday, in which they noted the positive prospects for the further growth of the stock, and also informed its investors to buy them. This move has resulted in Xiaomi today showing that it is one of the best dynamic portfolios in the industry, promising even further growth.

CICC analysts have raised their share price target by 100%, and are optimistic about Xiaomi's smartphone market share growth. CICC believes that Xiaomi will be among the three largest mobile phone manufacturers in the world, if not this year, then definitely next year.

In the second quarter, Xiaomi's market share in Europe reached 17%, an increase of 65% year on year, making Xiaomi the third largest smartphone maker in Europe for the first time.

JUST IN: Check out our Q2 2020 earnings report.

Over the next decade, we aim to truly lead the way to the future of smart living. To make this happen, Xiaomi's core strategy will be upgraded to "Smartphone X AIoT" #NoMiWithoutYou#SmartLivingForEveryone pic.twitter.com/Vj6NPslide

- Xiaomi (@Xiaomi) August 26

The smartphone market has not had its best season lately, and the COVID-19 pandemic crisis has come to make matters worse. Some companies started publishing their sales and profit results for the second quarter of 2020, and today it was Xiaomi's turn.

What is quite interesting is that unlike some other companies, Xiaomi has managed to have quite positive results despite the difficult situation in the global market. Xiaomi managed to have total revenues of 7,7 billion dollars in the three-month period ending in June. Its revenues increased to 3,1% in the second quarter of 2019 and to 7,7% in the first quarter of 2020.

Its profit was a total of $ 650 million, which represents an increase to 129% on an annual basis and is 8% better than in the first quarter of 108, when China was hit by the pandemic. Xiaomi saw a recovery in sales outside China and India, recording 2020% more daily smartphone activations than in the pre-pandemic in January 120.

According to a report, Europe played a big role for Xiaomi in the very positive quarter of 2020. Xiaomi's shipments in Europe increased by almost 65% compared to last quarter. Xiaomi was the top smartphone seller in Spain, second in France and fourth in Germany. These are very positive achievements, and perhaps a direct result of the big drop that Huawei experienced in the same period.

The Indian market was in big trouble because of COVID-19, when last March the government decided to close the market and launch a global LockDown of its population of almost 1,3 billion. The company is now recovering slowly, but has seen a 28% drop in the number of daily activations.

Xiaomi says this has nothing to do with customer demand continuing to be high. However, he blames the reduced local production due to the restrictions imposed by LockDown. India is Xiaomi's largest market outside of China, but its sales there will continue to be slightly lower than before, until local production returns to normal.

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