Xiaomi posted its record low first-quarter revenue as China’s covid measures across the nation and disrupted supply chain hit the company.
According to Reuters, the company’s revenue in the quarter fell to 10.85 billion dollars from 11.38 billion dollars a year earlier and below analyst expectations of 11 billion dollars.
Xiaomi shipped 38.5 million smartphone units in the first quarter, down 10.5% year-on-year. Its smartphone revenue was 6.87 billion dollars, down 11% year-on-year.
It posted a loss of 78.58 million dollars, down from a profit of 1.15 billion dollars a year ago.
Xiaomi’s president, Wang Xiang, said that the pandemic in China had a tremendous impact on its production and logistics. And these challenges have dealt a heavy blow to the company’s business.
In addition, the global chip shortage and the Russian-Ukraine war hurt Xiaomi’s international shipments.
Xiaomi is China’s biggest mobile phone maker. The company lost its global market share to Samsung and Apple as strict lockdowns severely hit its home market.
SCMP cited a research company Canalys, reporting that the smartphone market in mainland China plummeted in the first quarter. Total top five vendor shipments from Apple, Xiaomi, Oppo, Vivo, and Honor were down 18% year-on-year to 75.6 million units.
According to Bloomberg, Chinese smartphone firms are under pressure as China’s lockdown measures hurt demand and disrupt supply chains. Major chip factories in Shanghai have had to fully or partially shut down or operate under restrictions since late March following a sweeping lockdown in the city.
Last week, Semiconductor Manufacturing International Corp.’s (SMIC) Chief Executive Officer Zhao Haijun warned that the lockdown and the Russian—Ukraine war could take away about 200 million smartphone units from global shipments this year, with Chinese brands suffering the most loss.