Chinese technology giant Xiaomi shared its financial report for the second quarter of the year. According to the data, Xiaomi’s profit fell 83 percent compared to the same period last year and stood at 1.36 billion yuan ($200 million). Shares of the company also fell 52 percent.
Smartphone sales stall, Xiaomi revenues crash
At the last meeting to investors by Xiaomi CEO Lei Jun, Xiaomi’s financial situation was revealed. The world’s third-largest smartphone maker reported revenue of 70.1 billion yuan ($10.31 billion) in the last quarter. However, the company profit was only around $200 million. This figure went down in history as the lowest in recent years.
The fact that the financial picture was so down also affected Xiaomi shares traded on the Hong Kong stock exchange. According to the report, Xiaomi shares have lost around 52 percent compared to last year, to HKD 11 ($1.49).
It is thought that the decline in Xiaomi earnings in the second quarter of the year is especially related to the inflation crisis seen all over the world. Research firm Canalys reported that smartphone shipments in the first half of 2022 decreased by 9 percent compared to a year ago. In addition, Apple, Samsung and Xiaomi sold the most phones.
In addition, according to the report of the China-based South China Morning Post, Xiaomi cut 3 percent of its workforce and parted ways with 900 employees. “The pandemic has revived in the Chinese market, so demand has been weak,” said Wang Xiang, President of Xiaomi.
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