Investing.com.- Shares of Chinese smartphone maker Xiaomi Corp (MX:1810N) rose more than 5% today in Hong-Kong (8:00 am ET) after the company will announce that it is developing its own chip for computers.
The chip will be unveiled on March 29, the tech company announced via Weibo.
This announcement is in addition to the comments that appeared on Reuters and that point to what Xiaomi plans to build an electric vehicle at the factory of promising Chinese automaker Great Wall, news that has contributed to boost its value. The news agency cites three people close to the case.
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The shares of Great Wall Motor Co Ltd (SS:601633) rose nearly 10% on the Shanghai Stock Exchange and 9.6% on the Hong Kong Stock Exchange.
According to the informants, Xiaomi wants to serve the mass market with its electric car and you are planning a strategy similar to that of marketing your electronic products.
Great Wall, which has yet to provide manufacturing services to other companies, will accelerate the project with technical consulting services, according to one of the sources.
The cooperation will be announced early next week.
Xiaomi convinces with its numbers
In the fourth quarter, the Chinese smartphone maker took advantage of the weakness of its national rival Huawei brought on by US sanctions and robbed it of more market shares.
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Adjusted profit rose from October to December by almost 37% to 3.2 billion yuan (the equivalent of 415 million euros), as Xiaomi announced on Wednesday. The company benefited most from the increase in demand for smartphones, whose revenues increased by more than 38%. Group-wide sales increased by almost a quarter to € 9.15 billion.
In the People’s Republic, Xiaomi now has a 15% market share. Huawei is still clearly ahead, but it has recently lost market share. Xiaomi also announced that it has acquired a majority stake in wireless charging company Zimi.
By Robert Zach
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