Xiaomi reported second-quarter net profit of $ 1.28 billion on revenue of $ 13.56 billion following the Chinese tech giant’s sharp increase in smartphone market share.

In the quarter that ended in June, Xiaomi said it recorded 64% year-over-year revenue growth and that its net profit jumped more than 80% compared to the same period a year ago. year.

The Hong Kong-listed company said its smartphone revenue reached $ 9.1 billion, thanks to an equally impressive jump in smartphone shipments to 52.9 million units in the quarter, during which it has overtaken Apple to become the world’s second largest supplier of smartphones, according to market intelligence firm Canalys.

U.S. government sanctions against Xiaomi’s main domestic rival, Huawei, have helped the young company – as well as other manufacturers – gain market share nationally and globally.

Xiaomi’s revenue from the Internet of Things and Lifestyle product category also rose 36% to $ 3.2 billion.

Shortly after releasing its results, the company announced that it would be buying autonomous driving technology startup Deepmotion, which was formed four years ago, for around $ 77.3 million. The investment follows Xiaomi’s bold plan to invest $ 10 billion over the next decade in electric vehicles.

Xiaomi is the latest Chinese tech company to enter the electric vehicle industry. Chinese search engine giant Baidu announced earlier this year that it would manufacture electric vehicles with help from automaker Geely. In November, Alibaba and Chinese automaker SAIC Motor announced that they had teamed up to produce electric cars. Carpool leader Didi and electric vehicle maker BYD are also designing a carpooling model.

As my colleague Rita Liao pointed out earlier:

The internet behemoths compete with a host of more specialized EV startups such as Xpeng, Nio and Li Auto, which have already launched several models and are often compared to Tesla. They strive to differentiate themselves from one another by investing in features ranging from in-car entertainment to autonomous driving.

For Xiaomi, the obvious advantage of car manufacturing is its extensive retail network and international brand recognition. Some of its smart devices, such as smart speakers and air purifiers, could be easily integrated into its vehicles as selling points. The real challenge, of course, is in the making. Compared to the manufacture of phones, the automotive industry is more capital intensive with a long and complex supply chain. We will see if Xiaomi will come out of this.

Xiaomi said on Wednesday that its investment in Deepmotion will help the giant shorten the time to market for its products.