Xiaomi Smartphone Sales Fall 26 Percent Amid Weak Global Shipments
Xiaomi reported a sharp decline in smartphone shipments during the second quarter, even as revenue remained strong and premium devices helped support higher average selling prices.
Xiaomi smartphone shipments fell sharply.
The company shipped 31.2 million smartphones.
Xiaomi remains third globally.
Xiaomi has reported a significant setback in its smartphone business after shipments declined by more than 26 percent year on year during the second quarter.
The company shipped around 31.2 million smartphones during the quarter, marking a 26.3 percent decline from the same period last year. Despite the weaker volumes, Xiaomi continues to hold the third position in the global smartphone market.
The decline comes as the broader smartphone industry faces pressure from rising component costs and softer demand in several major markets. At the same time, manufacturers are increasingly relying on higher priced models to protect revenue.
Xiaomi generated smartphone revenue of around CNY 42.1 billion during the quarter. Its average selling price reached approximately 200 dollars, supported by stronger sales of premium smartphones. In China, premium models accounted for roughly one third of the companys smartphone sales.
Overall, Xiaomi recorded revenue of about 16.2 billion dollars during the quarter. Its gross profit margin stood at approximately 19.8 percent, while adjusted net profit was around 919 million dollars.
The companys smartphone and AIoT business remained its largest revenue contributor, generating around CNY 84 billion. The division reported a gross profit margin of close to 20 percent. Xiaomi also continued to increase investment in research and development, with its annual R and D spending expected to reach around 6 billion dollars this year.
The smartphone slowdown is not limited to Xiaomi. Indias smartphone market also experienced weaker shipments during the first half of the year. Shipments fell 7.9 percent year on year to around 64.2 million units, making it the weakest first half in recent years.
The second quarter was particularly challenging, with smartphone shipments in India falling about 11.1 percent to nearly 33.2 million units. However, the overall market value increased by 3.6 percent as average selling prices moved higher. Rising costs for memory, displays and other components have pushed manufacturers to increase prices.
Vivo retained the leading position in Indias smartphone market, while Xiaomi saw its market share decline by around 10 percent. The figures highlight the growing pressure on smartphone brands to balance shipment volumes with higher prices and premium product sales.
