Xiaomi’s business hit hard by China’s Covid-19 lockdowns as profit halves in first quarter
- Xiaomi said its first-quarter revenue fell 4.6 per cent from the same period a year earlier to 73.4 billion yuan
- ‘This pandemic in China had a very big impact on our production and logistics,’ said Xiaomi’s president
Chinese smartphone maker Xiaomi turned in weak sales and profit for the first quarter as China’s strict Covid-19 lockdowns dampened demand and disrupted supply chains across the country.
“This pandemic in China had a very big impact on our production and logistics,” said Wang Xiang, Xiaomi’s president, during an earnings call with reporters on Thursday. “Many of our stores in Shanghai are still closed.”
Wang also said the pandemic had dampened consumer confidence, contributing to weak sales.
Xiaomi said its first-quarter revenue fell 4.6 per cent from the same period a year earlier to 73.4 billion yuan (US$10.9 billion). The Beijing-based company said its adjusted net profit fell 53 per cent year-on-year to 2.85 billion yuan in the first quarter.
Xiaomi shipped 38.5 million smartphone units globally in the March quarter, down 10.5 per cent year-over-year. Its smartphone revenue came in at 45.8 billion yuan, down 11 per cent year-on-year.