Smartphone brand Xiaomi recorded sizeable drops in shipments and smartphone revenue in Q1, as a lack of key components and other global issues impacted both supply and demand for its products.

In its results statement, Xiaomi revealed revenue from smartphones dropped 11 per cent year-on-year to CNY45.8 billion ($6.8 billion) and shipments 22 per cent to 38.5 million units.

The drop in revenue was blunted by an increase in the ASP of its devices from CNY1,042 in Q1 2021 to CNY1,189, due to a larger proportion of sales being in the mid- to high-tier.

Xiaomi noted it held a strong position in the high-end market in China and continues to push its “smartphone premiumisation strategy” to up its sales in this segment.

The manufacturer attributed the declines in its smartphone unit primarily to “continued supply shortage of key components, the resurgence of Covid-19 (coronavirus), and global macroeconomic headwinds”.

Smartphones deliver 62 per cent of Xiaomi’s revenue, with the majority of the remainder from sales of other devices including IoT and consumer lifestyle products. These include air conditioners, fryers and washing machines.

Xiaomi’s total revenue fell 4.6 per cent to CNY73.3 billion, as it booked a net loss of CNY530.7 million compared to a CNY7.8 billion profit in Q1 2021.

The loss, it noted, was partly the result of the revaluation of its investments which had suffered declines in the quarter.