In the first quarter of 2023, Xiaomi reported a 19% drop in revenue compared with the same period a year earlier. The decline was noted across all segments, with the most pronounced pressure coming from smartphone sales, which fell by 24%. Analysts attribute this slide to the broader slowdown in the Chinese economy and a shrinking Xiaomi market share in India’s crowded smartphone market. (Bloomberg)
Bloomberg notes that Xiaomi’s leadership has redirected its focus toward a new business line: electric vehicles. The company is pursuing an ambitious EV program, planning a fresh prototype test next summer, and signaling a formal product announcement in 2024. The shift reflects Xiaomi’s strategy to diversify beyond consumer devices and tap into a high-capital, high-visibility sector. (Bloomberg)
Developing an electric vehicle demands substantial investment. To fund this transition, Xiaomi is tightening spending in other areas, with the marketing department identified as a primary area for cost reductions. Management emphasizes careful capital allocation as the company weighs long-term opportunities against near-term financial pressures. (Bloomberg)
In related tech news, sources indicate that Xiaomi explored a broader consumer display segment, reporting the introduction of a 27-inch 2K monitor with a 165 Hz refresh rate for around 15,000 rubles. This tie-in illustrates Xiaomi’s broader hardware ecosystem strategy, even as it navigates shifts in mobile demand and foreign exchange considerations. (citation)