Xiaomi smartphone shipments might decline in 2023, Kuo suggests

Xiaomi, a Chinese company that gained immense popularity in India soon after its introduction in 2014, started with phones and then expanded to other product categories such as wearables, smart TVs, and IoT devices. In just two years, the company invested in Indian startups and ventured into consumer lending services. Despite its success in India and China, Xiaomi has gained wide popularity outside these regions.

Kuo suggests that Xiaomi's smartphone shipment could decrease to 140 million units

According to a recent report by analyst Ming-Chi Kuo from Tianfeng International, Xiaomi's smartphone shipments in 2023 may not meet market expectations, which could result in lower stocks and increased device prices, ultimately impacting Xiaomi's customers. Despite this, the fact that Xiaomi's current inventory is 16 weeks ahead suggests that the market remains optimistic about the company's shipments.

Ming-Chi Kuo mentioned that Xiaomi's smartphone shipments in 2023 are projected to decrease to approximately 140 million units, reflecting a year-on-year decline of 8-10% from the current figures of 150-165 million. This is due to the weak production plans for Q1 and Q2 of 2023, and the absence of any updates for Q3. Xiaomi's smartphone parts inventory currently stands at around 40-50 million, but there is still a shortage of 20-25 million units.

Xiaomi has sufficient inventory to cover Q1 2023, but its inventory-taking efficiency is not very high. Expanding its inventory may not be profitable for Xiaomi. In Q4 2022, Xiaomi remained the third-largest smartphone manufacturer in the world, with 33 million units sold. However, in the previous quarter (Q3 2022), it sold 41 million units, and in 2021 it sold 45 million units, indicating a decline of 18% and 26.5%, respectively.