Xiaomi revenue declines

SHANGHAI: Xiaomi Corp posted its first quarterly revenue decline on record yesterday, after Beijing’s strict Covid containment policies crippled smartphone sales.

The world’s third-largest smartphone maker logged sales of 73.4 billion yuan ($10.9 billion) in January-March, down 4.6% from the previous year, beating the average analysts’ estimate of 72.5 billion yuan.

It swung to a net loss of 587.6 million yuan from a 7.8 billion yuan profit a year earlier.

Smartphone shipments fell 22.1% to 38.5 million units in the quarter, Xiaomi said.

To lower its dependence on smartphones, Xiaomi is trying to boost its sales of connected devices, such as $1,000 air conditioners and $40 door bells.

The upcoming June 18 annual shopping festival, when online retailers compete to offer bargains, could revitalise mobile sales.

Xiaomi has “strong momentum” in selling smart TVs, tablets, laptops, and connected home appliances, wrote CCB International Securities Ltd analysts Ronnie Ho and Clint Su. “The coming ‘6.18’ promotion event has the potential to support better smartphone sales.”