Xiaomi Q1 Revenue Falls on Logistic Challenges

Xiaomi Corp reported a fall in first-quarter revenue as as Covid-19 controls and lockdowns hit demand in China.

Xiaomi is a consumer electronics and smart manufacturing company with smartphones and smart hardware connected by an IoT platform at its core.

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. 

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.

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Experience working on communication and marketing departments and in the broadcast industry. Interested in sustainable development and international relations issues.

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