Xiaomi has revealed that its smartphone revenue fell 29 percent to RMB42.3 billion during the second quarter of 2022 though smartphone shipments grew 1.5 percent quarter-over-quarter to 39.1 million units.
Xiaomi’s smartphone sales generate more than half of the company’s total revenue.

Total revenue of RMB70.2 billion

Smartphone RMB42.3 billion 

IoT and lifestyle products RMB19.8 billion

Internet services RMB7.0 billion

Xiaomi has achieved quarter-on-quarter growth in phone shipment at a time when global smartphone shipments dropped 8.9 percent year-over-year and 7.7 percent quarter-over-quarter in the first half of 2022.

Xiaomi’s global smartphone shipments ranked No. 3 in the second quarter with market share of 13.8 percent, and its market share has increased for two consecutive quarters, according to Canalys.

Xiaomi’s revenue from overseas markets reached RMB34 billion, accounting for 48.4 percent of total revenue, in the second quarter of 2022.

Xiaomi’s market share in Europe, Latin America, Southeast Asia, Middle East and Africa rose quarter-over-quarter. According to Canalys, Xiaomi’s smartphone shipments ranked top 3 in 55 countries and regions and among the top five in 67 countries and regions. Xiaomi’s smartphone shipments ranked No. 2 in Europe with 21.7 percent market share, ranked No. 3 within Western Europe with market share of 15.8 percent and ranked No.1 in Spain.

Xiaomi penetrated the carrier channel. According to Canalys, the Group’s carrier channel market share in Europe increased from 17 percent in the first quarter to 18 percent in the second quarter of 2022. Xiaomi’s carrier channel market share in Latin America increased from 17.7 percent to 19.3 percent in the same period. Xiaomi smartphone market share through carrier channels ranked top three in 40 overseas markets.

Lei Jun, founder, chairman and CEO of Xiaomi Group — at the latest Xiaomi product launch event — has revealed that Xiaomi’s R&D investment has grown at a CAGR of 39.7 percent since 2017 and is expected to reach $17 billion in 2022 and $100 billion in the next five years.

Xiaomi said its total sales fell 20 percent year on year to 70.17 billion yuan ($10.31 billion), marking a steeper decline from the previous quarter when the company posted its first revenue drop since listing.

Net income fell 67 percent to 2.08 billion yuan. Rising fuel prices, input costs, and inflation affected overseas sales as well. Net profit fell as a result of pressure to clear inventory via sales and promotions.

“In the Chinese market, there was the resurgence of the pandemic, so as a result, demand was difficult and weak,” said Xiaomi president Wang Xiang on an earnings call.

In 2021, Xiaomi saw a sales surge after it grabbed market share from rival Huawei Technologies, whose ability to procure components was crippled by U.S. sanctions.

In India, Xiaomi’s strongest market outside of China, the company has been subject to government probes for allegedly dodging tax regulators.

Indian tax authorities in April seized $725 million in assets from the company, claiming it transferred funds abroad under the guise of royalty payments. Xiaomi has denied any wrongdoing.