Mubasher: Xiaomi’s revenue climbed by 15% in the second quarter of this year, while its net income plunged, the company announced on Tuesday in a statement.

The Chinese smartphone manufacturer is enduring weaker domestic demand for its devices, while its competitor Huawei has won more market share.

Xiaomi generated 51.95 billion Chinese yuan (CNY) ($7.37 billion) in the period between April and June, compared with CNY 45.24 billion in the same period last year.

Meanwhile, that fell short of analysts’ estimate of CNY 53.52 billion, according to a survey by Refinitiv.

However, the company’s net income dropped in Q2-19 by 86.6% year-on-year to CNY 1.96 billion down from CNY 14.63 billion.

Xiaomi’s smartphone shipments during the second quarter totalled 32 million units, while overseas markets expanded by 33.1% from a year ago.

As Chinese consumers rally in support of competitor Huawei, Xiaomi’s market share shank by a fifth.

Meanwhile, Huawei, which was blacklisted by the US, has seen its market share growing by 31% during the quarter, according to research firm Canalys.

Xiaomi’s internet services division, which generates most of its earnings from placing ads, made up 8.8% of its revenue, unchanged from a year ago.

In its push for diversification, Xiaomi invested in several companies manufacturing semiconductors and other key hardware components.

In the second quarter, Xiaomi funded Shanghai-based chip design company Verisilicon, and audio devices chip designer Bestechnic.