Xiaomi's revenue falls due to COVID-19
Chinese tech brand Xiaomi has been having some hard time due to Covid-19. The company's revenue falls in third quarter.
Covid 19 has hit everyone hard, including the biggest companies. Many big companies had to make layoffs. Income statements decreased, including Xiaomi. Xiaomi Corp. reported on Wednesday a 9.7% decline in third-quarter revenue as a result of China's COVID-19 restrictions and waning consumer demand.
Xiaomi's revenue falls due to COVID-19
The third quarter's sales were 70.17 billion yuan, or $9.81 billion, down from 78.063 billion yuan in the same period last year. This was slightly lower than what analysts had expected, which was 70.52 billion yuan. From 5.176 billion yuan a year ago, net income decreased by 59.1% to 2.12 billion over the course of the period. According to Canalys, a research company, smartphone deliveries in the third quarter decreased globally by 9% and 11%, respectively. Smartphones, which account for roughly 60% of Xiaomi's total sales, saw a 11.1 percent decrease in revenue year over year.
Xiaomi reported its first quarterly decline in revenue since its listing in 2018 in May.Revenue for the second quarter decreased by 20% year-over-year in August. Since the beginning of the year, Xiaomi's stock price has dropped nearly 50%. As the Covid-19 continues the companies are likely to suffer a bit more.
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