Xiaomi Suffers From Less Demand for Mobile Phones

The Chinese electronics group Xiaomi has seen turnover fall sharply in the third quarter. A worldwide drop in demand for smartphones bothered the company.

 

Less desire to buy on the home market due to the many corona lockdowns in China also played a role. Xiaomi also sells many other electronics in Asia, such as vacuum cleaners, air purifiers and humidifiers, electric toothbrushes and hair dryers.

The company sold 70.5 billion yuan products in July, August and September, down 10 percent from a year earlier. Turnover amounted to 9.6 billion euros.

Below the line, a loss of 1.5 billion yuan remained. That was caused because Xiaomi wrote off 3 billion yuan on investments in other companies.

The downturn is not the first for Xiaomi, which also has to deal with increased inflation and disappointing economic growth, especially in China. Although turnover fell for the first time on an annual basis in the first quarter, it decreased by 20 percent in the second quarter.

Xiaomi has high expectations for the future of the electric car market. However, an investment of more than 9 billion euros will still take several years to yield a return.

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