Xiaomi registered a double-digit drop in revenue in the final quarter of 2022 due to a resurgence in Covid-19 (coronavirus) in China and global macroeconomic headwinds, with declines in smartphone shipments and ASP.
In its earnings statement, Xiaomi cited fluctuations in the macroeconomic environment and geopolitical disruptions as factors in Q4 2022.
It noted work to establish a global presence “over the past years” had helped it “to effectively insulate our business against single market risks”.
Overseas sales accounted for 49.2 per cent of total revenue in 2022, it stated.
Net profit in Q4 rose 28.6 per cent year-on-year to CNY3.1 billion ($450.6 million), attributed a near threefold increase in other income, a 54.1 per cent drop in income tax and lower impairment charges on listed investments.
Revenue dropped 22.8 per cent to CNY66 billion.
Smartphones sales decreased 27.3 per cent to CNY36.7 billion, with shipments down 25.9 per cent to 32.7 million units and ASP 2 per cent to CNY1,121, credited to efforts to clear inventories in overseas market.
It’s IoT and lifestyle business decreased 14.4 per cent to CNY21.4 billion, with revenue from smart TVs and laptops down 24.9 per cent to CNY6.5 billion.
Internet services revenue was down 1.4 per cent to CNY7.2 billion.
Full year R&D expenses increased 21.7 per cent CNY16 billion.