Lockdown, Xiomi Profits Down in the First Quarter/2022
5/22/2022
Technology manufacturer from China, Xiaomi announced a decline in profit in the first quarter of 2022. This decline is the first time since Xiaomi was launched.
A technology manufacturer from China, Xiaomi announced a decline in profit in the first quarter of 2022. This decline is the first time since Xiaomi was launched.
Reporting from Bloomberg, in the first quarter of 2022 Xiomi recorded a profit of 73.4 billion yuan or Rp.
Meanwhile, in the previous quarter, namely IV/2021, Xiaomi experienced a decrease of 14.3 percent. Where in the fourth quarter of 2021 Xiomi's profit reached 85.6 billion or Rp. 186 trillion.
Xiomi Corporation President Director Wang Xiang said the decline in profits was due to the lockdown that occurred in big Chinese cities such as Shanghai.
"The Covid pandemic in China has severely affected our operations and logistics. It has also hurt consumers' desire to buy phones," Wang said, quoted by Bloomberg.
In addition to the lockdown in China, the war between Russia and Ukraine has also caused the mobile giant to suffer losses. This is because the lockdown and geopolitical war will reduce 200 million smartphone shipments globally.
This was revealed by the Co-CEO of Semiconductor Manufacturing International Corporation Zhao Hajiun. Of these 200 million smartphones, some of them are Xiaomi smartphones. Zhao also said that in the second quarter of 2022, it is hoped that smartphone sales conditions in China will improve again.
Meanwhile, Xiaomi is trying to reduce its dependence on smartphones. Xiomi is said to be trying to increase sales of connected devices, such as air conditioners for $1,000 and doorbells for $40.
This is because in the first quarter of 2022, Xiaomi recorded that the largest contributor to profit came from smartphones. Smartphones contributed Rp. 100 trillion or 45.8 billion in revenue. Meanwhile, the IoT and other electronic goods businesses made a profit of IDR 42 trillion or 19.5 billion yuan.
