Xiaomi’s Q3 financial report reveals 10% drop in revenue

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Xiaomi published its quarterly financial analysis and the numbers show a significant decline. Revenue for the July-September 2022 period was CNY 70.5 billion, just south of $10 billion. Of those, 50.5% came from overseas markets.

The turnover is 10% lower compared to last year. Net profit fell even more – 59% year-on-year to CNY 2.1 billion ($294 million). However, that was partly due to the CNY 829 million ($116 million) investment in the newly established electric car business and other projects that should bear fruit in the future.

The company also revealed that investment in R&D increased by 25% compared to a year ago, and 48% of its staff actually work in the R&D departments.


Xiaomi Q3 2022 financial results

Xiaomi Q3 2022 financial results

Xiaomi users in the MIUI universe reached 564 million, 78.1 million more than the same period last year – an annual increase of 16%. Interestingly, only 141 million of them (about 25%) are in China.

The company pushed 40.5 million smartphones in Q3 2022, and while it maintained its No. 3 position in the world, shipments fell 7.8% YoY with an 11.1% drop in revenue. Xiaomi cited “global macroeconomic headwinds” as one of the reasons, although it also improved promotional efforts in overseas markets.

Xiaomi Q3 2022 financial results
Xiaomi Q3 2022 financial results

Xiaomi Q3 2022 financial results

Xiaomi reached 2nd place in the European market, 1st place in Spain and 2nd place in Italy and France. Looking at wider regions, Xiaomi sits comfortably in third place in Latin America and Africa.

Smartphone companies in China have struggled to adapt to European customers and their preferences for buying smartphones through carriers rather than going to a third-party electronics store. Xiaomi revealed that it pushed 19.9% ​​of its phones through carrier channels, which is 1.7% more than twelve months ago. Similarly, in Latin America it reached 16% of phones through mobile companies, an increase of 1.5%.

Xiaomi Q3 2022 financial results
Xiaomi Q3 2022 financial results

Xiaomi Q3 2022 financial results

An official press release said that Xiaomi remains solid and demonstrates its robust business model. The company will continue in the same vein next quarter, just in time for the holiday season, despite the external headwinds and macroeconomic uncertainty.

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