Xiaomi recorded a double-digit drop in revenue in Q1, with weak global smartphone demand cutting shipments and ASPs, as sales declined across all business segments.

Smartphone revenue fell 23.6 per cent year-on-year to CNY35 billion ($5 billion), and shipments 21.1 per cent to 30.4 million units.

ASP fell 3.1 per cent to CNY1,152, attributed to efforts to clear inventories in overseas markets, which was partially offset by an 18 per cent domestic rise on premium models.

Smartphone gross profit margin rose 3.1 percentage points to 11.2 per cent, with total inventory falling 24.1 per cent to CNY42.6 billion, its lowest in nine quarters.

Net profit of CNY4.2 billion compared with a loss of CNY530.7 million in Q1 2022, aided by a one-time gain on investments and cost cuts.

It registering a CNY1.1 billion charge related to its smart electric vehicle business.

Revenue fell 18.9 per cent to CNY59.5 billion.

IoT and lifestyle product revenue fell 13.6 per cent to CNY19.5 billion.

Internet services revenue fell 1.2 per cent to CNY7 billion, mainly due to declines in its fintech and advertising businesses.

R&D expenses increased 17.7 per cent to CNY4.1 billion, with the full-year total forecast to reach CNY20 billion.