Xiaomi’s quarterly revenue fell 19 percent, reflecting declining demand for electronics and internet services in the stagnating Chinese economy. Sales fell across all units, led by a 24 percent drop in smartphone revenues and a 28 percent drop overseas. The commitment to automobile production targets continues.Revenues down, profits up
Xiaomi reported a 19 percent drop in revenue in its first-quarter report, which was recently announced as consumer demand for smartphones remains weak even as the economy recovers from the COVID-19 pandemic. Sales, which were $10.4 billion in the same quarter of the previous year, declined to $8.44 billion in the first quarter of 2023.
Net income increased 13.1 percent to $458.4 million from $405.8 million in the same period of the previous year. No recovery was seen in China’s smartphone industry during this period. Total sales in China fell 11 percent in the first quarter of 2023, research firm Canalys reported in April. Xiaomi’s sales during this period fell by 20 percent. Xiaomi said it shipped 30.4 million smartphones in the first quarter of 2023.
Xiaomi is investing in the automotive industry to move away from smartphones. The company plans to start mass production of its first car in the first half of 2024. Xiaomi announced that its research and development expenses reached $581.8 million, an increase of 17.7 percent. The firm expects research and development spending to exceed $2.8 billion by 2023.
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