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Chinese Smartphone Maker Xiaomi’s Revenue and Profit Slides

This photograph shows the Xiaomi logo at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 27, 2023. (AFP)
This photograph shows the Xiaomi logo at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 27, 2023. (AFP)
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Chinese Smartphone Maker Xiaomi’s Revenue and Profit Slides

This photograph shows the Xiaomi logo at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 27, 2023. (AFP)
This photograph shows the Xiaomi logo at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 27, 2023. (AFP)

Chinese smartphone maker Xiaomi Corp on Friday reported a record drop in fourth-quarter revenue as the company weathered a slowdown in consumption and disruptions due to China's COVID-19 curbs.

Sales in the fourth quarter of 2022 reached 66.05 billion yuan ($9.6 billion), down 22.8% from 85.58 billion yuan a year earlier.

The numbers were slightly ahead of analyst expectations, but they mark the fourth consecutive revenue drop for the company, and its steepest on record yet.

Net income fell to 1.46 billion over the period, down 67.3% from 4.473 billion yuan a year earlier.

The company's revenue for 2022 was 280.04 billion yuan, a drop of 14.7%, while net income came in at 8.52 billion yuan, down 61.4%. Both figures fell short of analyst expectations.

Overall consumption in China dragged on most product categories in the fourth quarter, as the abrupt lifting of strict COVID-19 curbs led to a rapid spread in infections across the country.

All major smartphone brands experienced a sales slump in China over the period, based on research firm Canalys. Xiaomi, however, took the largest hit with shipments dropping 37% year on year, the Canalys data showed.

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India to Offer $4-$5 Bln in Incentives for Electronics Production, Weaning Off China

A social media influencer uses a phone on the day of the unveiling of Hyundai IONIQ 9, a three-row electric SUV during a Hyundai event in the Hollywood Hills in Los Angeles, California, US, November 20, 2024. REUTERS/Daniel Cole
A social media influencer uses a phone on the day of the unveiling of Hyundai IONIQ 9, a three-row electric SUV during a Hyundai event in the Hollywood Hills in Los Angeles, California, US, November 20, 2024. REUTERS/Daniel Cole
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India to Offer $4-$5 Bln in Incentives for Electronics Production, Weaning Off China

A social media influencer uses a phone on the day of the unveiling of Hyundai IONIQ 9, a three-row electric SUV during a Hyundai event in the Hollywood Hills in Los Angeles, California, US, November 20, 2024. REUTERS/Daniel Cole
A social media influencer uses a phone on the day of the unveiling of Hyundai IONIQ 9, a three-row electric SUV during a Hyundai event in the Hollywood Hills in Los Angeles, California, US, November 20, 2024. REUTERS/Daniel Cole

India will offer up to $5 billion in incentives to companies to make components locally for gadgets from mobiles to laptops, two government officials said, in a bid to bolster the burgeoning industry and wean off supplies from China.
India's electronic production has more than doubled in the last six years to $115 billion in 2024, led by growth in mobile manufacturing by global firms such as Apple and Samsung. It is now the world's fourth-largest smart phone supplier.
But the sector faces criticism for its heavy reliance on imported components from countries such as China.
"The new scheme will incentivize production of key components like printed circuit boards that will improve domestic value addition and deepen local supply chains for a range of electronics," one of the two officials said.
The incentives are likely to be offered under a new scheme expected to be launched in two to three months, said the officials, who asked not to be identified as details of the scheme are not yet public.
The scheme is likely to offer incentives totaling between $4-$5 billion to global or local firms which qualify, Reuters reported.
The plan, designed by the India's electronics ministry, has identified components eligible for incentives and is in its final stages.
The finance ministry will approve the scheme's final allocation soon, the first official added, with the sources expecting it to be launched in the next 2-3 months.
India's electronics ministry and finance ministry did not immediately respond to requests for comment.
India is aiming to expand its electronics manufacturing to $500 billion by the fiscal year 2030, including production of components worth $150 billion, according to the government's top policy think tank Niti Aayog.
India imported electronics, telecoms gear, and electrical products worth $89.8 billion in the fiscal year 2024, with more than half sourced from China and Hong Kong, according to an analysis by private think tank GTRI.
"This scheme is coming at a time when it is critical to promote component manufacturing that will help us aim for a global-scale of electronics production," Pankaj Mohindroo, head of India's Cellular and Electronics Association, said.