Waning Smartphone Demand Affects Xiaomi’s Revenue in Q3
Xiaomi went into negative territory in the third quarter of 2022. Chinese vendor reported a 10% revenue decline after global macroeconomic turbulence weighed on smartphone demand.
Xiaomi noted it continued to expand its presence overseas and smartphone market share in Europe, Latin America, and the Middle East all increased during the quarter. Revenue of CNY70.5 billion ($9.9 billion) was down from CNY78 billion in 3Q21 and it fell from a profit of CNY788.6 million to a CNY1.5 billion loss. The figure was impacted by CNY829 million in expenses related to a smart electric vehicle play and other new initiatives.
Smartphone revenue fell 11% to CNY42.5 billion, primarily due to a decrease in shipments and average sales prices. Shipments fell 8.4% from 43.9 million units to 40.2 million. ASP decreased by 3% in total, with enhanced promotional efforts in overseas markets partially offset by the launch of premium smartphones in mainland China.
The company’s revenue from IoT and lifestyle products declined 9% to CNY19.1 billion, primarily attributed to decreased sales in overseas markets due to weak demand for IoT products. The negatives were slightly offset by increased revenue from large home appliances in China. Revenue from internet services fell 3.7% to CNY7 billion, which it put down to declines in its fintech and advertising businesses.