Xiaomi has released its quarterly financial analysis and the numbers show a significant decline. Revenue for July-September 2022 was CNY70.5 billion, just under $10 billion. Of these, 50.5% came from foreign markets.

Turnover is 10% lower than last year. Net income fell even more – 59% year over year to CNY 2.1 billion ($294 million). However, this was partly due to the investment of CNY 829 million (US$116 million) in the newly established electric vehicle business and other projects that are expected to bear fruit in the future.

The company also revealed that R&D investments are up 25% from a year ago, and 48% of its staff work in R&D departments.

Financial results of Xiaomi Q3 2022
Financial results of Xiaomi Q3 2022

Financial results of Xiaomi Q3 2022

Xiaomi users in the MIUI universe have reached 564 million, 78.1 million more than the same period last year, with an annual increase of 16%. Interestingly, only 141 million of them (about 25%) are in China.

The company pushed 40.5 million smartphones in the third quarter of 2022, and while maintaining its third position in the world, shipments were down 7.8% on the year, with revenue down 11.1%. Xiaomi cited “global macroeconomic headwinds” as one reason, though it also boosted promotional efforts in overseas markets.

Financial results of Xiaomi Q3 2022
Financial results of Xiaomi Q3 2022

Financial results of Xiaomi Q3 2022

Xiaomi reached the 2nd place in the European market, the 1st in Spain and the 2nd in Italy and France. Looking at broader regions, Xiaomi sits comfortably in 3rd place in Latin America and Africa.

Smartphone companies in China have struggled to adapt to European customers and their preferences of purchasing smartphones through carriers rather than going to a third-party electronics store. Xiaomi has revealed that it has pushed 19.9% ​​of its phones through operator channels, which is 1.7% more than twelve months ago. Similarly, in Latin America, it reached 16% of phones through operators, an increase of 1.5%.

Financial results of Xiaomi Q3 2022
Financial results of Xiaomi Q3 2022

Financial results of Xiaomi Q3 2022

An official press release states that Xiaomi remains solid, demonstrating its resilient business model. The company will continue to push the same way into the next quarter, just in time for the holiday season, despite external headwinds and macroeconomic uncertainty.



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Philip Owell

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