Xiaomi, the world’s third largest phone manufacturer, continues to lose revenue due to Covid-19 restrictions in China and problems in the global economy.
Layoffs have begun
According to shared reports, in the second quarter, which ended on June 30, Xiaomi experienced a 20 percent decline, with annual sales revenue of 70.17 billion yuan ($ 10.31 billion), below the estimates. However, the tech giant’s net income fell 67 percent in the last quarter to 2.08 billion yuan ($305 million).
Research firm Canalys reported that unit shipments in the Chinese market fell by 10 percent, affecting the smartphone industry, which has been in a stagnation for a long time. In the last quarter’s statements, “Due to the re-emergence of the pandemic in the Chinese market, demand was difficult and weak”, Xiaomi president Wang Xiang said that rising fuel prices, input costs and inflation also affected overseas sales.
Xiaomi Civi 2 ready for launch: it could arrive in September
In 2021, Xiaomi had seen a huge increase in sales, taking over Huawei’s market share due to US sanctions. But that growth has fallen by nearly 40 percent since the start of 2022, driven by a slowing Chinese economy and weakening overseas growth. Along with the economic slowdown, it is reported that the smartphone giant has parted ways with 900 employees.
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