Chinese handset maker Xiaomi fell into the red during Q3, being hit by a 10 per cent revenue decline, as it lamented global macroeconomic turbulence which weighed on global smartphone demand.
In its earnings statement, Xiaomi noted it continued to expand its presence overseas and smartphone market share in Europe, Latin America and Middle East all increased during the quarter.
Revenue of CNY70.5 billion ($9.9 billion) was down from CNY78 billion in Q3 2021 and it fell from a profit of CNY788.6 million to a CNY1.5 billion loss, with the figure impacted by CNY829 million in expenses related to a smart electric vehicle play and other new initiatives.
Smartphone revenue fell 11 per cent to CNY42.5 billion, primarily due to a decrease in shipments and ASPs.
Shipments fell 8.4 per cent from 43.9 million units to 40.2 million.
ASP decreased 3 per cent in total, with enhanced promotional efforts in overseas markets partially offset by the launch of premium smartphones in mainland China.
Revenue from IoT and lifestyle products declined 9 per cent to CNY19.1 billion, primarily attributed to decreased sales in overseas markets due to weak demand for IoT products.
The negatives were slightly offset by increased revenue from large home appliances in China.
Revenue from internet services fell 3.7 per cent to CNY7 billion, which it put down to declines in its fintech and advertising businesses.Subscribe to our daily newsletter Back