Xiaomi sees fall in revenue: How home country woes are troubling the company

Xiaomi has reported a decline of 9.7% YoY in its Q3 2022 revenue at RMB 70.5 billion (or $9.8 billion). The Chinese smartphone giant stayed largely flat in QoQ terms. The revenue decline was attributed to a slowdown in the company’s three major segments – smartphones, AIoT and internet services. The smartphone segment suffered the biggest decline among the three, with revenue down 11.1% YoY.

Smartphone sales see biggest hit
According to Counterpoint’s Market Monitor Service, Xiaomi’s shipments were down 8.8% YoY in Q3 2022 with a global market share of 13.4%. The decline in shipments was also accompanied by a decrease in the average selling price (ASP). Xiaomi’s smartphone ASP declined 2.2% QoQ from RMB 1,081.7 (or $151) per unit in Q2 to RMB 1,058.2 per unit (or $148) in Q3. The fall in ASP can be largely attributed to promotional activities in overseas markets to clear out inventory, offsetting the increase in ASP in China’s market.