Global smartphone demand down, 18.9% drop in Xiaomi’s quarterly revenue
Consumer demand remains weak in the smartphone market, and Xiaomi’s 18.9% drop in quarterly revenue is in line with the general trend.
Q1 2023 sales were CNY 59.5 billion, down from CNY 73.35 YoY, which is approximately in line with expert forecasts. In the same period, net income was up to CNY 3.23 billion (up by 13.1% from CNY 2.86 billion) YoY.
Once China eased the pandemic control, its economic recovery has been apparent, but consumer spending is still restricted. Smartphone sales are still down, with total sales dropping by 11% in Q1 2023. Meanwhile, Xiaomi’s sales fell 20%.
Xiaomi’s previously top overseas market – India – was also sluggish, with shipments falling 20% in Q1, with Samsung and other competitors eating away at Xiaomi’s market share. Prices were cut on several Xiaomi models in both Chinese and Indian markets to stimulate demand.
Attempting to diversify its portfolio, Xiaomi is investing in the automotive industry, intending to launch its first car into mass production in the first half of 2024.