Xiaomi has a drop in revenue in the 3rd quarter

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Chinese smartphone maker Xiaomi reported on Wednesday (23) a 9.7% drop in third-quarter revenue, affected by social isolation measures in China and reduced consumer demand.

Third-quarter revenue reached 70.17 billion yuan ($9.81 billion), down from 78.063 billion in the same quarter a year earlier, slightly below analysts’ expectations of 70.52 billion yuan.

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Net profit fell 59.1% to 2.12 billion yuan from 5.176 billion a year ago.

Consumption in China remained weak in the third quarter as cities across the country continue to implement lockdowns to prevent the spread of the coronavirus.

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Third-quarter smartphone sales fell 11% in China and 9% globally, research firm Canalys said.

Smartphone revenue, which accounts for around 60% of Xiaomi’s total sales, was down 11.1% year-on-year.

In 2021, Xiaomi saw a surge in sales after grabbing market share from rival Huawei, whose ability to source electronic components has been affected by US sanctions.

However, the momentum was short-lived. In May, Xiaomi reported its first quarterly revenue decline since the company’s listing in 2018. In August, second-quarter revenue was down 20% year-on-year.

Xiaomi’s stock price has dropped nearly 50% since the start of the year.

The company, in turn, looked to new areas for growth. Last year, Xiaomi formally announced a foray into electric vehicles, committing to start mass production in the first half of 2024.

Source: CNN Brasil

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