Xiaomi sees 4% revenue dip in second quarter on shrinking phone market

- Xiaomi Corp reported a revenue drop of 4% in the second quarter on Tuesday, tracking a continued sales decline in China's handset market. Sales

Xiaomi Corp reported a revenue drop of 4 per cent in the second quarter on Tuesday, tracking a continued sales decline in China's handset market.

Sales dropped to 67.4 billion yuan ($9.24 billion), down from 70.17 billion in the same quarter yuan a year earlier, but beating analysts' estimates of 65.13 billion yuan.

Net income rose to 5.14 billion yuan over the period, an increase of 147 per cent from 2.08 billion yuan a year earlier, also beating analysts' expectations.

Consumer demand in China's smartphone market continued to shrink in the second quarter, dropping 5 per cent to 64.3 million units, according to research firm Canalys.

Xiaomi's shipments declined by 19 per cent to 8.6 million, while in major overseas market India, Xiaomi shipments also fell 22 per cent to 5.4 million units, Canalys said.

In light of declining handset sales, Xiaomi is planning to manufacture electric vehicles (EVs) and has received approval from China's state planner, Reuters reported this month.

The company has pledged a $10 billion investment over a decade in the automobile business and set a goal of mass car production for the first half of 2024.

($1 = 7.2915 Chinese yuan renminbi)