Xiaomi Faces a Drop in its First Quarterly Revenue of this Year: Drops by 18.9%
The Chinese consumer electronics manufacturer, Xiaomi faces a drop in revenue of 18.9% in the first quarter of this year compared to the revenue from last year in the same quarter. Even after strict Covid 19 measures have been taken away by China, the smartphone industry still fails to revive.
Read about it below.
Xiaomi’s Quarterly Revenue Drops Amidst Decline in Smartphone Demand
China in late 2022 had lifted all the strict measures that the country had issued with the rise of Covid 19 cases and many sectors including healthcare and travel had reported significant growth. But even after the strict measures were taken away, the smartphone industry is still facing its aftermath with dropping smartphone demand.
One of the leading smartphone makers in the country, Xiaomi in the first quarter of this year has now reported a drop of 18.9% in its total revenue compared to the revenue the company was able to make in the same quarter in 2022. The sales in the first quarter went down from 73.35 billion yuan last year to 59.5 billion yuan, a little higher than the estimated 59.43 billion yuan. However, the company has also reported a net income of 3.23 billion yuan, which is a 13.1% rise compared to 2.86 billion yuan last year.
As mentioned, the smartphone industry in China is still failing to revive from the Covid 19 after-effects and as reports reveal, the total smartphone sales of the country has dropped by 11% in the first quarter of this year.
India, which is one of Xiaomi’s best markets has also not favored the brand and many other smartphone makers including Samsung has been taking away Xiaomi’s market in India. In hopes of creating demand, the Chinese smartphone makers have also taken the step, of cutting down the price of many of its smartphone models both in China and in India.