Xiaomi Q1 2023 revenue drops 18.9 percent as smartphone demand stagnates
Xiaomi on Wednesday reported an 18.9 percent decline in quarterly revenue as consumer demand for smartphones remained weak even as the economy recovered from the COVID-19 pandemic.
Revenue in the first quarter of 2023 was CNY 59.5 billion (approximately Rs. 4,91,900 crore), down from CNY 73.35 billion (approximately Rs. 6,06,400 core) in the same quarter a year earlier, roughly matching analyst estimates of CNY 59.43 billion (approximately Rs. 4,91,300 crore).
Net profit rose to CNY3.23 billion in the period, up 13.1 percent from CNY2.86 billion (about Rs23,600 crore) a year earlier.
After China lifted strict pandemic measures late last year, the country’s economy has rebounded, but consumers are spending cautiously. China’s smartphone industry has seen no recovery at all during that period. Total sales in China fell 11 percent in the first quarter of 2023, research firm Canalys reported in April. Xiaomi’s sales fell 20 percent during that period.
India, once Xiaomi’s largest overseas market, has also proven less lucrative for the smartphone maker. Total smartphone shipments fell 20 percent across all brands in the first quarter, and rivals like Samsung have eaten into Xiaomi’s share of the shrinking market. The company has cut prices on several models in India and China in hopes of reviving demand.
Xiaomi is investing in the automotive sector in a bid to diversify away from smartphones. The company plans to begin mass production of its first car in the first half of 2024.
© Thomson Reuters 2023
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