Tech

Xiaomi reports record Q4 revenue decline, losing Indian smartphone market to higher-end devices to Samsung


Chinese smartphone maker Xiaomi on Friday reported a record drop in fourth-quarter revenue as the company weathered slowing consumption and disruptions caused by China’s COVID-19 restrictions.

Early signs suggest that the Chinese economy will only recover slowly as consumers remain cautious in spending despite the easing of domestic and international travel restrictions.

Xiaomi Group chairman Lu Weibing, speaking on a company earnings call, said China’s consumer electronics industry is showing early signs of recovery but “it will take time”.

The year-on-year decline could continue into the first half of the year before a rebound occurs, he added.

Xiaomi’s sales in the fourth quarter of 2022 reached CNY 66.05 billion (nearly Rs 79.2 trillion), down 22.8% from CNY 85.58 billion (nearly Rs 102.6 trillion) a year earlier.

The numbers were slightly higher than analysts’ expectations, but they marked the company’s fourth consecutive decline in revenue and the steepest decline in history.

Net income fell to CNY 1.46 billion (nearly Rs 1,750 billion) for the period, down 67.3% from CNY 4,473 billion (nearly Rs 5,360 billion) a year earlier.

The company’s revenue in 2022 was CNY 280.04 billion (nearly Rs 3,35,800), down 14.7%, while net income reached CNY 8.52 billion (nearly Rs 10,200), down 61, 4%. Both metrics fell short of analysts’ expectations.

Smartphone is sluggish

Overall consumption in China trailed most products in the fourth quarter, as the sudden lifting of strict COVID-19 restrictions led to the rapid spread of infections across the country. country.

All major smartphone brands experienced a drop in sales in China during this period, according to research firm Canalys. However, Xiaomi has been hardest hit with shipments falling 37% year-on-year, Canalys data shows.

of China smartphone Canalys data shows sales fell to a record in 2022, falling 14% to 287 million units. That marked the first time in 10 years that sales fell below 300 million units.

Xiaomi is also facing headwinds in India, where it failed to notice the growing consumer preference for higher-end devices and ended up losing its position as a phone brand. best-selling into Korean hands. SAMSUNG in the fourth quarter.

The company, along with its rivals, may also face new security probes from the Indian authorities due to national security concerns over the preset application.

India is Xiaomi’s largest overseas market and the world’s second largest smartphone market.

Xiaomi is also expanding into tram. The company said Friday that it is “on track” to achieve its goal of mass production of the first cars in the first half of 2024.

© Thomson Reuters 2023


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