Xiaomi, one of China’s biggest tech product manufacturers, has released its financial report for the first quarter of the year 2022. Xiaomi is known for its phenomenal growth in such a short time, possibly because of its amazingly priced products and redefined business strategy. But the financial report for Q1 2022 for the brand mentions some unexpected headlines and reports for the brand. Let’s have a close look at what actually the report says.
Xiaomi’s Q1 2022 Financial Report
According to the official financial report released by Xiaomi, the brand’s total revenue in the first quarter has achieved a landmark of CNY 73.4 Billion (USD 10.8 Billion), the total revenue of the brand has surprisingly gone down by 4.6% year on year. Further, the brand’s adjusted net profit hits CNY 2.9 billion (USD 430 million), which is down by 52.9% year-on-year.
Data shows that in the first quarter of 2022, Xiaomi’s smartphone business revenue was CNY 45.8 billion (USD 6.8 billion), and the global smartphone market shipped 38.5 million units. Xiaomi’s global smartphone average selling price (ASP) increased by 14.1% year on year to CNY 1,189. At the same time, Xiaomi shipped nearly 4 million high-end smartphones in mainland China priced at CNY 3,000 (USD 445) or more.
The brand blamed the loss in the first quarter of 2022 on the current pandemic and various restrictions imposed by government authorities. They also stated that global component shortages limited their ability to provide limited units of product, causing their report to fall even further. Chinese smartphone manufacturers are facing challenges, including tough measures to combat coronavirus. This results in a decrease in domestic demand as well as a disruption in supply chains. Shanghai’s largest manufacturing plants have been forced to work under strict restrictions on worker movement since the end of March, following a coronavirus infection outbreak in the region.