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Xiaomi weakened in the third quarter

Xiaomi published its financial data for the quarter from the beginning of July to the end of September, which expects a difficult near future due to runaway inflation, recessionary challenges and the global health situation. In the third quarter, the Chinese manufacturer achieved a total sales revenue of 70.5 billion yuan (3.9 trillion forints), which is a 10% drop compared to last year. However, the challenges of 2022 were more affected by the operating profit, as the total amount of 2.1 billion yuan (116 billion forints) represents a 59% annual decline.

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It is worth noting here that the coffers were burdened by an investment of nearly one billion yuan, from which Xiaomi’s electric car business benefited, and it will take a few more years before this department sees revenues. Nevertheless, the manufacturer is looking ahead: it has increased its research and development expenses by 25% and its staff interested in this by nearly 50%. In the third quarter, users of the MIUI ecosystem reached 564 million, which is 78 million more than at the same time last year, and Xiaomi shipped a total of 40.2 million smartphones worldwide, reaching the bottom of the mobile market podium, but experiencing a decline of 7.8% .

The Xiaomi 12X struck the balance in terms of size, speed and consumption [+]

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By the way, 50.5% of the sales revenue came from outside China, and in Europe Xiaomi’s 23.3% share means a silver medal position – in Spain it also took first place. The presence of service providers increased by 1.7%, and the sales of phones more expensive than 3,000 yuan (HUF 166,000) by 14%. Of course, we would add here that inflation certainly played a part in this, as the price category boundaries have shifted significantly. All in all, there is still no reason to panic on the part of Xiaomi, but at the same time, with the economic difficulties and the zero Covid policy, the tension in the People’s Republic of China is increasing, and in parallel, customer sentiment may decrease further.

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