Xiaomi recorded a 4% fall in revenue in the second quarter, tracking a continued sales decline in China’s handset market.
Sales dropped to C¥67.4-billion, down from ¥70.2-billion in the same quarter a year earlier, but beating analysts’ estimates of ¥65.1-billion.
Net income rose to C¥5.1-billion over the period, an increase of 147% from C¥2.1-billion a year earlier, also beating analysts’ expectations.
Consumer demand in China’s smartphone market continued to shrink in the second quarter, dropping 5% to 64.3 million units, according to research firm Canalys.
Xiaomi’s shipments declined by 19% to 8.6 million, while in major overseas market India, Xiaomi shipments also fell 22% to 5.4 million units, Canalys said.
In light of declining handset sales, Xiaomi is planning to manufacture electric vehicles and has received approval from China’s state planner, Reuters reported this month.
The company has pledged a US$10-billion investment over a decade in the EV business and set a goal of mass car production for the first half of 2024. — David Kirton, (c) 2023 Reuters
