China's Xiaomi reports sales spike in first quarter

Xiaomi, the world's third-biggest smartphone maker, said its sales in the first quarter reached $10.4 billion (75.5 billion yuan), up 27 percent from a year ago.

The company launched its first electric vehicle in March, entering a cut-throat domestic market with the SU7 sedan that comes equipped with karaoke equipment and a mini-fridge.

"As of April 30, 2024, the cumulative locked-in orders for the Xiaomi SU7 Series reached 88,063 vehicles," the company said in its earnings report on Thursday, adding that it had delivered 10,000 cars by mid-May.

But its more traditional smartphone business still accounted for the bulk of sales growth, bringing in 46.5 billion yuan in the first quarter, up 32.9 percent on-year.

The Hong Kong-listed company said its research and development costs for the first quarter were up more than 25 percent on-year, "primarily due to the increase in research and development expenses related to our smart EV business and other new initiatives".

Many top tech firms in China -- the world's largest auto market -- have invested recently in the country's EV sector, where foreign firms have struggled to get a foothold.

Founded in 2010, Xiaomi has achieved rapid growth through its strategy of marketing high-end devices at affordable prices, initially directly through online channels.

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