Xiaomi reported 15 percent growth in revenue to 51.95 billion yuan or $7.36 billion in the June quarter from 45.24 billion yuan in the year-ago period.
Xiaomi faces significant challenges in China where fewer people bought smartphones from Xiaomi at home and rival Huawei grabbed market share.

Research agency IDC earlier said Xiaomi experienced a small year-over-year decline during the June quarter by shipping 32.3 million smartphones.

Xiaomi is facing challenges in returning to positive year-over-year growth in China in part due to increased competition from Huawei. Xiaomi India will expand its offline network and aims to have 10,000 retail stores by the end of 2019 to regain share from Samsung.

Xiaomi said its net income fell to 1.96 billion yuan during the June quarter of 2019.

Shipment volumes in China accounted for 62 percent of Huawei’s Q2 2019 total with 36.4 million units, IDC said. Huawei relocated significant human resources back to China with a focus on distribution channel management in the Chinese lower-tier cities — following the U.S trade ban.

Huawei’s market share in China surged by 31 percent in the June quarter, according to market research firm Canalys, while Xiaomi’s share shrank plunged by a fifth. But Canalys reckons Xiaomi’s shipments to Europe surged 48 percent.

Xiaomi’s internet services unit, which makes money primarily by placing ads across various apps, accounted for 8.8 percent of its revenue, flat from one year prior.