Electronics and home appliance maker Xiaomi announced that in the first quarter of 2022, revenue decreased by 4.6% to 73.4 billion yuan ($10.9 billion). This was facilitated by severe restrictions imposed by the Chinese authorities to combat the spread of coronavirus infection, as well as a global shortage of components.
Xiaomi’s net loss for the first three months of 2022 was 587.6 million yuan (about $80 million), while a year earlier for the same period a profit of 7.8 billion yuan ($1.16 billion) was made. Against this backdrop, the largest Chinese smartphone maker continues to lose global market share, due to which main competitors such as Samsung and Apple continue to increase sales.
Chinese smartphone makers are experiencing difficulties, including due to tough measures being taken to combat the coronavirus. This entails a decrease in demand in the domestic market, and also leads to a disruption in supply chains. The largest manufacturing plants in Shanghai have been forced to work under strict restrictions on the movement of workers since the end of March, after an outbreak of coronavirus infection was recorded in the region.
The decline in the smartphone business, which accounts for about 60% of Xiaomi’s sales, the vendor is trying to compensate for with consumer appliances and other electronics. Previously became knownthat Xiaomi has notified suppliers that it will lower its 2022 smartphone production target from 200 million units to 160-180 million units.
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