Xiaomi has problems - the net profit for the second quarter dramatically plummeted by 83%

Xiaomi has felt the effects of the war in Ukraine, inflation and fear of recession.

What we know

The crisis in the smartphone market has derailed the growth of Xiaomi in China. In the second quarter of 2022, their net income was $204 million, down a crazy 83% year-over-year. Revenue also fell, but not as dramatically, to $10.3 billion (-20%).

Xiaomi is losing ground not only in the global market, but also in China. The company is inferior to competitors Honor and vivo. At the end of the second quarter of 2022 smartphone shipments in China fell by 22% compared to the same period in 2021, while the entire market sagged by 14.7%.

In India, Xiaomi is not doing well either. The country's government has decided to ban the sale of Chinese smartphones priced below $150. However, this has not yet affected the manufacturer's financial performance.

Source: Bloomberg