One of the fastest growing mobile phones manufacturing companies in China, Xiaomi has 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. Xiaomi’s shipments declined by 19% to 8.6 million, while in India, Xiaomi shipments also fell 22%. 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.
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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.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry