Xiaomi's Revenue Falls 4.6% in Q1 2022

Xiaomi reported a decline in revenue in the first quarter of 2022. From January to March, Xiaomi's total revenue amounted to 73.4 billion yuan, or approximately Rp161 trillion.

This revenue figure represents a 4.6% decrease compared to the same period last year, which recorded 76.9 billion yuan, or approximately Rp167 trillion (year-on-year/yoy).

The year-on-year decline in Xiaomi's revenue in Q1 2022 was the first since Q1 2018. At that time, Xiaomi's revenue increased from 34.4 billion yuan to 43.7 billion yuan in Q1 2019.

The following year, Xiaomi's revenue increased again to 49.7 billion yuan and reached its highest point in Q1 2021.

Quoting Counterpoint, this situation is primarily attributed to a global decline in smartphone sales. The company's smartphone business, its largest contributor, recorded an 11.1% (yoy) decrease.

Xiaomi's global smartphone shipment share has declined for the past three quarters, falling from a high of 16% in Q2 2021 to 12% in Q1 2022. Shipments have reached their lowest point since Q3 2020.

Counterpoint's Senior Analyst, Ivan Lam, noted that the first quarter is typically a seasonal low point for all companies.

"However, Xiaomi's smartphone sales declined more sharply than the market. Historically, Xiaomi built its base with entry-level and mid-end devices," said Ivan.