Xiaomi Q1 revenue falls 18.9% as global smartphone demand stalls


SHANGHAI: Xiaomi Corp reported an 18.9% drop in quarterly sales on Wednesday as consumer demand for smartphones remained weak despite the economy recovering from the Covid-19 pandemic.
Revenue in the first quarter of 2023 reached 59.5 billion yuan, down from 73.35 billion yuan in the same quarter last year, roughly in line with analysts’ estimate of 59.43 billion yuan.
Net profit rose to 3.23 billion yuan during the period, up 13.1% from 2.86 billion yuan a year earlier.
After China lifted its strict pandemic controls late last year, the country’s economy has recovered but consumers are spending cautiously.
China’s smartphone sector failed to recover at all over the period. Total sales in China fell 11% in the first quarter of 2023, market research firm Canalys reported in April. Xiaomi’s revenue fell 20% over the period.
India, once Xiaomi’s most important foreign market, also proved less lucrative for the smartphone maker. Total smartphone shipments fell 20% across all brands in the first quarter, and rivals like Samsung have eaten away at Xiaomi’s share of the shrinking market.
The company has slashed prices on several of its models in India and China in hopes of stimulating demand.
Xiaomi is investing in the automotive sector to diversify away from smartphones. The company plans to start mass production of its first car in the first half of 2024.

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