Xiaomi (1810) posted a net loss of 587.6 million yuan (683.2 million Hong Kong dollars) in the first quarter of 2022 compared to a profit of 7.8 billion yuan a year earlier, after taking into account losses in the fair value of investments.
China’s biggest smartphone maker also posted its first-ever quarterly revenue decline after Beijing’s strict lockdown policies and global component shortages crippled smartphone sales.
Revenue in the quarter fell to 73.35 billion yuan from 76.88 billion a year earlier and was below the 74.3 billion expected by analysts, according to Refinitiv data.
Xiaomi, which generates the vast majority of its revenue from the sale of mobile handsets, said in a filing that its smartphone revenue fell 11% year-on-year to 45.8 billion yuan in the quarter, and that shipments had also fallen 22.1% to 38.5 million units. .
“In the first quarter, the whole industry faced challenges, first with a shortage of components, then the resurgence of Covid-19, and also an impact on the macroeconomic environment,” the chairman of the company said yesterday. society, Wang Xiang.
“These challenges have dealt a severe blow to our business,” he added.
The company and rival phone makers Vivo and Oppo have asked suppliers to cut orders for the next quarters by more than 20% due to lockdowns and disrupted supply chains, Nikkei reported.