Amid declining consumer demand for smartphones, handset maker Xiaomi reported 18.9 per cent fall in quarterly revenue. Xiaomi's sales in the first quarter (Q1) of 2023 reached CNY 59.5 billion or roughly Rs 4,91,900 crore. This is down from CNY 73.35 billion or roughly Rs 6,06,400 core) in Q1 2022, roughly in line with analyst estimates of CNY 59.43 billion or roughly Rs 4,91,300 crore, says a report by news agency Reuters.
The decline in Xiaomi's revenue may be attributed to Chinese consumers' cautious spending even as it lifted its stringent Covid-19 pandemic controls late last year. China's economy has also recovered, but its smartphone sector saw no bounce back over the period at all. Total sales in China fell 11 per cent in the first quarter of 2023, according to research firm Canalys' report in April. Xiaomi's sales over the period declined 20 per cent.
India, once Xiaomi's top market overseas, has also proved less lucrative for the smartphone maker. handset shipments fell 20 per cent across all brands in the first quarter, and rivals such as Samsung have eaten away at Xiaomi's share of the shrinking market, the Reuters report added.
The handset maker has cut prices on several of its models in India and China in the hope of spurring demand. According to market intelligence firm Canalys, amid sluggish consumer demand, the Indian smartphone market witnessed the first-ever Q1 shipment decline of 20 per cent (year-on-year).
Overall, the India smartphone market saw 30.6 million unit shipments in Q1 2023, a massive drop from 38.2 million in Q1 2022. While Samsung remained at the top spot with a 21 per cent market share, shipping 6.3 million units, Oppo overtook Vivo and Xiaomi to reach the second spot with 5.5 million shipments, driven by successful new product launches.
Xiaomi slipped to fourth place, shipping 5 million units, while Realme was at the fifth spot with 2.9 million shipments as the online channel remained muted.