- Xiaomi remains the third brand that sells the most smartphones in the world.
- However, its revenue and earnings plummeted in the first half of 2022.
- The collapse of sales in China, its main market, was key to the deterioration of the business.
Since it was born just 12 years ago, Xiaomi has very quickly risen to the top of the crowded Chinese tech market.
It did so well that it is among the top smartphone manufacturers globally.
Its marketing strategy is based on focusing on smartphones, but also on consumer electronics such as its successful Xiaomi Band.
In the last five years, it has grown like a true snowball to compete directly with mega-giants in the sector such as Apple and Samsung.
But not all are lights on the horizon for Xiaomi, which after years of experiencing steady revenue and profit growth is now having some trouble.
Xiaomi: sales and profits fall (what will marketing do?)
The Chinese automaker posted a net profit of 1.365 billion yuan (about $200 million) in the second quarter of 2022, down 83 percent from profit in the same period last year.
so it has release the mark this Friday, August 19.
Xiaomi’s turnover, meanwhile, climbed to 70,171 million yuan (about 10,200 million dollars), 20 percent less than the revenue indicated in 2021. Always in the brand’s second fiscal quarter.
Operating profit, for its part, fell by a brutal 84 percent between April and June, to 1,733 million yuan (250 million dollars).
If only the phone segment is counted, Xiaomi earned 42.27 billion yuan ($6.14 billion), 28 percent below 2021.
Less affected was the business of Internet of Thingswhich fell 4.5 percent to less than 20 billion yuan ($2.8 billion).
There is also good news on Xiaomi
Regarding the volumes of phones manufactured and sold by Xiaomi in the second quarter of 2022, the brand reached 39.2 million units, which allowed the Chinese manufacturer to remain in the third position globally behind Samsung and Apple. .
Until now, it remains with a market share of 13.9 percent, an advance of 1.3 percentage points in relation to the first quarter of 2022.
In other good news, revenue from the brand’s Internet service area grew 20.1 percent to 1.11 billion yuan ($160 million) in the second quarter of the year.
Analyzing the first half of the year, Xiaomi saw its net profit fall 94.7 percent to 835 million yuan ($120 million), while its revenue reached 143.5 billion yuan ($20.8 billion), a decline of 12.9 percent.
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