Xiaomi’s capitalization increased by $20 billion amid Apple’s problems in China – Kommersant

According to agency estimates Bloombergsince June, the market capitalization of the Chinese electronics manufacturer Xiaomi has increased by $20 billion. The agency attributes the rise in quotations of this Chinese company and other local smartphone manufacturers to a decrease in Apple’s sales in China and an increase in sales of its competitors, including Xiaomi.

In early November, Apple reported a fourth consecutive decline in total revenue. Experts attribute this primarily to the decline in Apple sales in China, which is the company’s third largest market. Revenue from the Chinese division of Apple decreased by 2.5%, amounting to $15.1 billion. In this region, Apple’s sales are negatively affected by the general economic slowdown, as well as increasing competition from local companies. Additionally, The Wall Street Journal previously wrote citing sources that Chinese authorities have banned local officials from using iPhones for official purposes and bringing them to work.

In such conditions, analysts expect further revenue growth for Apple’s local competitors. “Huawei is increasingly increasing sales thanks to its new products with unique camera functions and satellite communications,” Bloomberg quotes Jiang Xi Cortesi, an analyst at the investment company GAM Investment Management. “The pace of iPhone sales in China is slowing down, as many consumers do not see significant improvements in the functionality of the new iPhone.”

Evgeny Khvostik