Xiaomi has revealed it’s report for the first quarter of 2022, and their gains seem like they’re falling significantly, due to factors like the pandemic and more. The company reported that it made 2.9 billion RMB this year, which is down 52.9% from last year
Xiaomi sales down significantly from last year
In the conference call regarding earnings, Xiaomi Group’s president Wang Xiang said that the pandemic has affected Xiaomi significantly, regarding the chip shortage, and affected their production, sales, logistics, and local store sales. Alongside all of that, Xiaomi’s costs and expenses have increased substantially. During the pandeming, Xiaomi has helped it’s employees significantly, and this has led to their costs rising.
Wang Xiang claims that they are still uncertain about how the 2nd quarter of 2022 will end up, but are hopeful about the results. The chip shortage slowly getting better should affect Xiaomi positively, due to the supplying of low end chips. However, Xiaomi’s R&D investments have also increased. Lin Shiwei, Xiaomi’s CFO claimed that the Chinese tech conglomerate spent 3.5 billion in research and development in the first quarterr of 2022.
Xiaomi is slowly increasing their research and development budget which should lead to better devices and experiences, whether it be software or hardware.