Chinese consumer electronics maker Xiaomi saw second-quarter sales fall 4% year over year to $9.2 billion as demand for smartphones in China continued to fall. According to company officials, the implementation of the strategy to prepare for the introduction of electric vehicles is ahead of schedule.
Xiaomi revenue last quarter turned out Net income beat analysts’ expectations and also rose 147% to a level ($705 million) that beat market expectations. Advances in this direction have been made through cost reductions, particularly at the corporate branch level. According to Canalys, smartphone shipments in China fell 5% to 64.3 million units, with Xiaomi alone falling 19% to 8.6 million smartphones. In India, shipments of this brand’s devices fell 22% to 5.4 million units. The company intends to expand its presence in different regions and market segments, albeit with significant efforts. According to Xiaomi President Lu Weibing, the decision of some competitors to exit certain market segments will not be a model for this company.
Xiaomi will spend at least $10 billion over the next decade to develop the electric vehicle market and has already received one of the necessary approvals for such activities from regulators in China, according to unofficial data. Liu Weibing stressed that the company’s plans to start mass production of electric vehicles in the first half of 2024 remain in place. He added: “Our current progress is exceeding expectations and ahead of our original production start schedule.”.