The giant smartphone maker Xiaomi’s revenue has fallen by almost 9.7% in the third quarter as covid-19 hits china. As a new variant of omicron spreads across the country government puts Covid-19 restrictions and cities across china implement lockdowns.
Total sales revenue reported is 70.17 billion yuan($9.81 billion) which is roughly 9.7% lower than 78.06 billion yuan ($10.89 billion) reported in the same quarter year. This fall has been reported in almost all the electronics sector of the country.
As Xiaomi’s major revenue comes from smartphone manufacturing, The company got a major hit by this covid-19 pandemic situation. Almost net income fell by 59.1% nearly 2.12 billion yuan from 5.176 billion yuan in the period of one year which turns out to be a major hit to the company.
The smartphone sector has received a large hit in this situation as the shipments are reduced and export has been put on hold for many.
Xiaomi’s stock prices have fallen nearly by 50% in the last two years and the revenue of the company first time got down the curve since 2018.
In 2021 Xiaomi’s revenue has increased rapidly as the demand across the country has increased as globally many sectors shifted to more online or virtual forms of work. And over the period China was able to handle the covid-19 situation very delicately while many other countries have announced lockdowns across borders.
Therefore, Xiaomi made a huge profile over the period of 1 year and was able to acquire its position in the global market.
Xiaomi is planning to add up new sources of income like electric vehicles by 2024, The company has announced the massive production of e-vehicle starting in the year 2024.