Xiaomi has reported a 18.9 percent drop in revenue in the first quarter of 2023 to 59.5 billion yuan, down from 73.35 billion yuan in the same quarter a year earlier.
Xiaomi has generated revenue of 35 billion yuan from smartphone business, 16.8 billion yuan from IoT and lifestyle products and 7 billion yuan from internet services in Q1 2023.
Xiaomi said net income rose to 3.23 billion, an increase of 13.1 percent from 2.86 billion yuan a year earlier.
Xiaomi said it shipped 30.4 million smartphones in Q1 2023. Xiaomi said smartphone ASP increased to 1,152 yuan (+2.7 percent QoQ).
Xiaomi maintained our No. 3 global smartphone shipment ranking in the first quarter while holding market share at 11.3 percent, according to Canalys.
Smartphone sales in China fell 11 percent in the first quarter of 2023, research firm Canalys reported in April. Xiaomi’s sales fell 20 percent in China.
In India, once Xiaomi’s top market overseas, its smartphone shipments fell 20 percent across all brands in the first quarter, and rivals such as Samsung have eaten away at Xiaomi’s share of the shrinking market.
Xiaomi has cut prices on several of its smartphone models in India and China in the hope of spurring demand. Xiaomi could not reach top 1-2 positions in global smartphone market. Xiaomi is #3 in Europe, Latin America, Africa, the Middle East and South East Asia. Xiaomi is #4 in China and India.
According to Canalys, Xiaomi’s smartphone market share ranked top 3 in 47 markets and top 5 in 64 markets.
Xiaomi is investing in the automotive sector in an attempt to diversify away from smartphones. The company plans to start mass production of its first car in the first half of 2024.
Xiaomi said its research and development expenses reached 4.1 billion yuan, up 17.7 percent. Xiaomi expects research and development expenses to exceed 20 billion yuan in 2023. As of March 31, 2023, Xiaomi had 16,458 research and development personnel, accounting for more than 50 percent of its employees. Xiaomi has obtained more than 32,000 patents worldwide as of March 31, 2023.