Xiaomi published its financial revenue analysis for the most recent quarter, revealing a sharp fall. From July to September 2022, revenue was CNY 70.5 billion, or slightly less than $10 billion.50.5% of them originated from foreign markets.
The revenue is 10% less than it was the previous year. Even more, the loss was experienced in net profit, which fell 59% year over year to CNY 2.1 billion ($294 million). That was nevertheless partially a result of the CNY 829 million ($116 million) investment made in the newly established EV industry, as well as other initiatives that ought to pay off in the future.
The company also said that 48% of its employees work in research and development (R&D) departments. This is a 25% increase in investments in this area from the year before.
There are now 564 million Xiaomi users in the MIUI world, 78.1 million more than at this time last year, a rise of 16% annually. It’s interesting to note that only 141 million of them (or around 25%) reside in China.
The company shipped 40.5 million smartphones in Q3 2022, maintaining its third-place global ranking even though yearly shipments were down 7.8% and revenue was down 11.1%. Xiaomi said that “global macroeconomic difficulties” were a reason, and it also stepped up its marketing efforts in other countries.
In Europe, Xiaomi came in at number two, taking the first spot in Spain, second in Italy, and third in France. Xiaomi is easily ranked third in Latin America and Africa when taking a global perspective.
Chinese manufacturers of smartphones have found it difficult to adjust to European consumers’ preferences for purchasing smartphones from carriers rather than from independent electronics retailers. 19.9% of Xiaomi’s phones were distributed through carrier channels, an increase of 1.7% from a year before, the company disclosed. Similarly, it reached 16% of phones in Latin America through carriers, a 1.5% rise.
According to an official press release, Xiaomi is still strong, despite a drop in revenue, proving the strength of its resilient business model. Even though there are problems from the outside and financial uncertainty, the company will make similar progress in the next quarter, just in time for the holiday season.