Manufacturer of Xiaomi electronics and home appliances was announced that in the first quarter of 2022, revenue fell 4.6% to 73.4 billion yuan ($ 10.9 billion). This is due to the strict restrictions imposed by the Chinese authorities. to combat the spread of coronavirus infection, as well as the global shortage of components.
Xiaomi’s net loss for the first three months of 2022 was 587.6 million yuan (about $ 80 million), up from 7.8 billion yuan ($ 1.16 billion) a year earlier. In this context, the largest Chinese smartphone manufacturer continues to lose global market share. due to which major competitors such as Samsung and Apple continue to increase their sales.
Chinese smartphone makers are facing difficulties, including due to tough measures in the fight against coronavirus. This reduces demand in the domestic market and also leads to disruption of supply chains. The largest manufacturing plants in Shanghai were forced to work under severe labor restrictions. from the end of March, after an outbreak of coronavirus infection in the area.
Xiaomi drops sales for first time, ending first quarter with losses
The fall in the smartphone business, which accounts for about 60% of Xiaomi’s sales, the seller is trying to offset consumer devices and other electronics. Earlier it was reported that Xiaomi warned suppliers to reduce the target for smartphone traffic in 2022 from 200 million units to 160-180 million units.
It has become known that the largest Chinese smartphone manufacturers against Xiaomi, Oppo and Vivo have notified their own suppliers of their intention to reduce the volume of orders by 20% in the coming quarters. Asian Tech Press writes about it, citing its own sources.
According to the report, Xiaomi has informed suppliers that it is reducing its own target. for smartphone traffic in 2022 from 200 million units to 160-180 million devices. At the same time, in the latest report, Xiaomi reported the first decrease in quarterly sales. All this because of Covid’s restrictions in China and beyond.
Note that Xiaomi’s competitors such as Oppo and Vivo will also reduce production. by about 20% during the year. The source says that this is necessary for the sale of the accumulated stocks. in manufacturers’ warehouses in recent months. However, we will definitely get more details about this in the coming weeks.