Xiaomi's Quarterly Revenue Falls Amid Shrinking China Smartphone Market
Handset maker Xiaomi's quarterly revenue saw a four per cent decline in the second quarter (Q2) of 2023, on the back of a shrinking smartphone market in China.
Handset maker Xiaomi's quarterly revenue saw a four per cent decline in the second quarter (Q2) of 2023, on the back of a shrinking smartphone market in China. The company's shipments dropped to 67.4 billion yuan (or $9.2 billion) from 70.17 billion yuan in the same quarter last year. Its sales, however, beat analysts' estimates of 65.13 billion, says a report by news agency Reuters. China's smartphone market continued to decline in the second quarter, dropping five per cent to 64.3 million units, says market intelligence firm Canalys.
Amid a declining handset business, Xiaomi is mulling to make electric vehicles (EVs) and has received approval from China's state planner, says a previous report by Reuters.
"Despite the macroeconomic headwinds in the global market we continue to expand our footprint," Lu Weibing, Xiaomi President, was quoted as saying during an earnings call.
Xiaomi sold 15.8 per cent fewer devices between April and June 2023, compared to the same period last year. However, the average sale price (ASP) of a Xiaomi smartphone slightly increased from CNY 1,081.70 ($148.80) to CNY 1,112.20 ($154.37), on the back of increased ASP in China.
"Several of our peers already exited from certain areas in this challenging environment, but no matter how hard it will be we will reinforce our presence across regions and markets," Lu added.
Xiaomi market share in India has been falling too and it is being attributed to "internal organisational issues" and significant decision-making authority being centralised at the Chinese headquarters. The handset maker was at the top spot in the Indian smartphone market and the leading smartphone brand in India, but it lost its status to South Korean tech giant Samsung in the third and fourth quarters of the last fiscal.
To recall, Manu Jain, who was credited with establishing the brand's smartphone category in India, quit the company in January, after nine years.
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