After Operation Sindoor, Turkey is paying the price for supporting Pakistan during the Indo-Pak conflict, but now China also seems to be bearing the brunt of it.
Revenue figures of Chinese smartphone company Xiaomi have been revealed recently, which are very shocking. In the first quarter of the current calendar year, the company's revenue is reduced to almost half as compared to the first quarter of last year. There is a 45 percent decline in the wholesale revenue of the company.
Company's shipment volume also fell
According to data from market research firm Canalys, Xiaomi's non-GST revenue from smartphone sales has come down to $47.2 million in the first quarter of FY 2025, from $85.3 million in the same quarter last year. Besides, the company's shipment volume also fell to 4 million in the January-March quarter during this tenure, a massive drop of 38 percent, and it has dropped out of the top 5 for the first time since the third quarter of 2016.
If experts are to be believed, the company was busy clearing the inventory of the previous quarters. Based on the data of the market tracker, it has been found that after its active efforts to make inroads into the high value segment, Xiaomi's average sales value has actually fallen by 12 percent to $ 118 in the March quarter.
Xiaomi is aiming to become premium
Sanyaam Chaurasia, senior analyst at Canalys, has said that Xiaomi is aiming to become premium. Their leadership talks about premiumization. He has said that branding may need to be improved to increase the company's Average Selling Price, including reassuring channel partners and customers about the premium quality of the products and ecosystem.
However, the company is still faltering here. But Xiaomi has clarified that the decline in volume is in line with the company's planning, which focuses on profitable growth of market valuations to streamline its portfolio, not just on chasing volume in a declining smartphone market.
Prakash Kumar Pandey