On Wednesday, Xiaomi revealed an 18.9% decline in quarterly revenue as customer demand for smartphones remained poor despite the economy’s recovery from the COVID-19 pandemic.
Sales in the first quarter of 2023 totaled ¥ 59.5 billion (approximately Rs. 4,91,900 crore), down from ¥ 73.35 billion (approximately Rs. 6,06,400 core) in the same quarter a year prior. This figure was largely in line with expert projections of ¥ 59.43 billion (about Rs. 4,91,300 crore).
Over the time, net income increased to 3.23 billion, up 13.1% from ¥ 2.86 billion (approximately Rs. 23,600 crore) a year earlier.
The economy of China has recovered since late last year, when it removed its strict economic controls, but consumers are being cautious with their spending. There was absolutely no recovery in China’s smartphone market during that time. According to research firm Canalys, overall sales in China decreased 11% in the first quarter of 2023. Xiaomi’s sales during that time period decreased by 20%.
India, previously Xiaomi’s top international market, has proven to be less profitable for the smartphone manufacturer.In the first quarter, the total number of shipped smartphones decreased by 20% across all brands, and Xiaomi’s market share has been reduced by competitors like Samsung. In India and China, the business has reduced the price of a number of its models in an effort to increase demand.
In an effort to diversify away from smartphones, Xiaomi is making investments in the automotive industry. The business intends to begin mass producing its first car in the first half of 2024.