HomeTechnologyXiaomi Announced Revenue Dive as Smartphone Demand Wavers

Xiaomi Announced Revenue Dive as Smartphone Demand Wavers

Xiaomi Corp.’s quarterly revenue declined by 10% as the company struggled to cope with a global slump in smartphone demand, as well as weaker consumer demand at large due to the inflation-induced rising cost of living.

Mobile device sales took the biggest hit, plummeting by 11% for the quarter. This came as the global demand for smartphones slumped by 12.2% for the year. The demand for smartphones is expected to fall a further 2.9% in 2023, with a Jeffries report forecasting a further decline in Xiaomi’s sales before the company starts its recovery in 2024.

The company’s sales for the quarter amounted to 70.5 billion yuan ($9.9 billion). While higher than experts’ estimates, the Beijing-based company still posted a net loss of 1.5 billion yuan for the quarter through September.

Jefferies analysts, including Edison Lee and Nick Cheng, stated in a note that they believe that the decline in smartphone demand is actually a result of phones being built according to higher quality standards, thereby giving consumers less reason to purchase replacements.

2022 has been a challenging year from a financial perspective for Xiaomi, with the company reporting a sales drop in the first quarter along with another 20% fall during the second quarter.

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