Today, Xiaomi Group officially released its financial report for the first quarter of 2022. According to the financial report, the company’s total revenue in the first quarter reached RMB 73.4 billion ($10.8 billion), down 4.6% year on year. Furthermore, its adjusted net profit hit RMB 2.9 billion ($430 million), down 52.9% year-on-year. In terms of smartphones, factors such as the continuous shortage of supply of core components, repeated COVID-19 outbreaks and the global macroeconomic environment have had a greater impact on the demand and supply of the overall smartphone market.
Data shows that in the first quarter of 2022, Xiaomi’s smartphone business revenue was 45.8 billion yuan ($6.8 billion), and the global smartphone market shipped 38.5 million units. Xiaomi’s global smartphone average selling price (ASP) increased by 14.1% year on year to RMB 1,189. At the same time, Xiaomi shipped nearly 4 million high-end smartphones in mainland China priced at RMB 3,000 ($445) or more.
Xiaomi loses ground in India – falls behind Samsung
Xiaomi has been struggling lately in the Indian market. There have been money laundering issues in order to reduce taxes. Besides, the company’s sales have been plunging in recent times. As a result, Samsung, its closest rival in India overtook Xiaomi in March.
Analysts from Counterpoint Research concluded that Samsung became the number one company in India in the first month of spring with a share of 22% of the delivered devices, 27% of all profits ended up in the company’s treasury. The increase in income against the background of the same period last year amounted to 9%. Among the reasons for a successful month for the company are the good sales of the Galaxy S22 series; and new products in the Galaxy M, A and F lines.
Samsung has published on its website a press release on its success in India and also talked about plans for the future. Thus, the company wants to increase its share in the Indian market to 40% in the first half of 2022. Also, the main focus is on the Galaxy A13, Galaxy A23, Galaxy A33, Galaxy A53 and Galaxy A73 models.
“Samsung led the Indian smartphone market in March 2022 capturing 22% shipment volume and 27% revenue share; according to Counterpoint Research Monthly India Smartphone Tracker. Timely portfolio expansion with 5G capability down to M, F & A series and strong uptake of the Galaxy S22 and foldable flagship series helped Samsung grow back to the leadership position. This growth is commendable considering the entire industry is facing supply chain constraints whereas; Samsung leveraging its vertical integrated supply chain expertise and scale could navigate the shortages better. Samsung has gained strong momentum to capitalize and maintain the lead,” said Neil Shah, Vice President of Research, Counterpoint.