SHANGHAI (Reuters) -Xiaomi Corp reported a 18.9% drop in quarterly revenue on Wednesday as consumer demand for smartphones remained weak even as the economy recovered from the COVID-19 pandemic.
Sales in the first quarter of 2023 reached 59.5 billion yuan, down from 73.35 billion yuan in the same quarter a year earlier, roughly in line with analyst estimates of 59.43 billion yuan.
Net income rose to 3.23 billion over the period, an increase of 13.1 % from 2.86 billion yuan a year earlier.
After China lifted its stringent pandemic controls late last year, the country’s economy has recovered but consumers are spending cautiously. China’s smartphone sector saw no bounce back over the period at all. Total sales in China fell 11% in the first quarter of 2023, research firm Canalys reported in April. Xiaomi’s sales over the period fell 20%.India, once Xiaomi’s top market overseas, has also proved less lucrative for the smartphone maker. Total smartphone shipments fell 20% across all brands in the first quarter, and rivals such as Samsung have eaten away at Xiaomi’s share of the shrinking market. The company has cut prices on several of its models in India and China in the hope of spurring demand.
Xiaomi is investing in the automotive sector in an attempt to diversify away from smartphones. The company plans to start mass production of its first car in the first half of 2024.
($1 = 6.9121 Chinese yuan renminbi)
(Reporting by Josh Horwitz; Editing by Louise Heavens and Christina Fincher)
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