Xiaomi recorded sizeable drops in shipments and smartphone revenue in the first quarter of 2022. A lack of key components and other global issues impacted both supply and demand for vendor's products.

In its results statement, Xiaomi revealed revenue from smartphones dropped 11% to CNY45.8 billion ($6.8 billion) and shipments by 22% to 38.5 million units. The drop in revenue was blunted by an increase in the ASP of its devices from CNY1,042 in 1Q21 to CNY1,189, due to a larger proportion of sales being in the mid-to high-tier.

Xiaomi’s total revenue fell 4.6% to CNY73.3 billion, as it booked a net loss of CNY530.7 million compared to a CNY7.8 billion profit in 1Q21. The loss, it noted, was partly the result of the revaluation of its investments which had suffered declines in the quarter. Chinese Vendor added it held a strong position in the high-end market in China and continues to push its smartphone premiumization strategy to up its sales in this segment.

The manufacturer attributed the declines in its smartphone unit primarily to the continued supply shortage of key components, the resurgence of COVID-19, and global macroeconomic headwinds. Smartphones deliver 62% of Xiaomi’s revenue, with the majority of the remainder from sales of other devices including IoT and consumer lifestyle products.