Global economic slowdown is causing downfall in tech sales
Xiaomi, a China-based tech company, is best known for its affordable and featured phones. But when tech industries all across the world are battling with economic fall and inflation Xiaomi is going through the same. The Beijing-based company secured the sale of 70.5 billion Yuan with a net loss of 1.5 billion Yuan in the September quarter.
Analysts had expected close to this figure of 70.2 billion Yuan in revenue with 1.8 billion Yuan. As per the different experts, almost all other companies are facing the same fall in sales that is likely to improve in 2024. Sales will go down next year too but not like this year which has caused a major fall.
Rising inflation and global economic slowdown are major causes. The supply chain has also been affected by China’s zero COVID policy and these companies need to work on bringing something really new. A slight update in features and design is not a convincing reason to spend money when you have a loose pocket.