Chinese smartphone brand Xiaomi Thursday reported lower results for the first quarter, with shipments down on the back of global macroeconomic headwinds and the resurgence of Covid-19.
In the report, Xiaomi gained total revenue of USD 10.9 billion, down 4.6% compared with USD 11.5 billion in Q1 2021.
The company said the 52.9% decrease in net profit was mainly attributed to COVID-19, the global smartphone market environment, target customers’ purchasing power, the costs of labour and parts, and the shortage of chips.
— Xiaomi (@Xiaomi) May 19, 2022
Revenue from the smartphone business line decreased by 11.1%.
“The Covid pandemic in China heavily impacted our operation and logistics. It also hurt consumers’ willingness to buy phones,” President Wang Xiang said in a call on Thursday.