In a big surprise for Xiaomi due to lack of demand for smartphones, revenue fell by more than 18 percent

Chinese consumer electronics company Xiaomi’s revenue fell 18.9 percent in the first quarter. Weak demand for smartphones has had a major impact on the company’s earnings. The company’s sales in the first quarter stood at CNY 59.5 billion (about Rs 4,91,900 crore). This is up from CNY 73.35 billion (about Rs 6,06,400 crore) in the same period last year.

though, company Its net income rose over 13 percent to CNY 2.86 billion (approximately Rs. 23,600 crore). China’s economy has recovered from severe pandemic restrictions late last year, but consumers are cautious about spending. China’s smartphone market has yet to take off. In a report by market research company Canalys, it was said that total smartphone sales in China fell by 11 percent in the first quarter. Xiaomi’s sales in China have decreased by about 20 percent during that period.

India used to be Xiaomi’s top overseas market, but the decline in smartphone sales in the country has led to huge losses for the company. Big companies like Samsung have created market share. To increase demand in India and China, the company has also reduced the prices of many smartphones. Xiaomi is also facing legal issues in India. Last month, the Karnataka High Court upheld the Enforcement Directorate’s (ED) freeze on the company’s assets worth more than $670 million. The company challenged the asset freeze in court. The ED had frozen the company’s assets last year. The ED said that Xiaomi sent money to foreign companies illegally to pay royalties.

However, Xiaomi denied wrongdoing. The company said the asset freeze was unfair and hindered the company’s operations in the country. Last year, Xiaomi’s lawyers sued the court to stop this ban. In this regard, the court said that the company should provide a bank guarantee equal to the assets held earlier.