Xiaomi sales slide as lockdowns bite

STORY: China’s never-ending lockdowns are causing pain at Xiaomi.

The smartphone maker said Wednesday (November 23) that revenue dropped almost ten percent over the third quarter.

That took it just below $10 billion.

Consumer spending in China has been sapped by ongoing health-crisis curbs.

Researchers say that contributed to an 11% drop in handset shipments over the period.

Xiaomi saw its revenue from smartphone sales - about 60% of its business - fall by a similar amount.

Last year, the firm had enjoyed a boom as U.S. sanctions weighed on bigger rival Huawei.

But the boost proved short lived.

In May this year, Xiaomi reported its first revenue decline since going public in 2018.

Then in August it saw quarterly sales drop by a fifth.

Its share price has tumbled by around a half over the year amid the string of disappointing news.

Xiaomi is now looking for new growth areas, including electric vehicles.

It’s committed to start producing EVs in the first half of 2024.