Xiaomi is struggling. The firm blamed a sharp drop in smartphone sales for its fourth-quarter revenue dip. The COVID-19 pandemic in mainland China has disrupted Xiaomi’s operations and could hurt the company’s growth in a competitive field.
Xiaomi’s Q4 2022 sales dropped 22.8% to 66.05 billion yuan ($9.6 billion), according to Reuters. The company’s fourth straight quarter of sales loss and steepest decline to date were slightly better than expected. Net income dropped 67.3% to 1.46 billion yuan.
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With Xiaomi’s recent problems, is China’s tech giant’s future bleak? Recent obstacles have plagued the firm. In Q4 2022, it lost its top smartphone sales spot in India, a key market for the firm. Xiaomi’s India smartphone sales dropped 24% in 2022.
In Q4, the firm fell behind Samsung and Vivo. Xiaomi has had four straight quarters of declining income, with Q4 2022 being the worst. The Chinese company’s status is still being determined.
On an earnings call, Xiaomi group president Lu Weibing said that while China’s consumer goods market is better, it will take time for sales and income to recover. He added that year-over-year drops may persist until 2023.
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