Xiaomi sales slump on China lockdowns

STORY: Sales at smartphone maker Xiaomi tumbled over the second quarter.

They dropped by a fifth to just over $10 billion.

The firm took a hit amid tough conditions in China, the world’s biggest smartphone market.

Shanghai and other major cities there have faced new health-crisis lockdowns.

Data this week showed that the country’s economic growth unexpectedly slowed as a result.

Meanwhile the company says overseas sales were hit by rising inflation.

Net profit also took a hit, as Xiaomi used sales and promotions to clear out inventory.

The company had enjoyed a surge in 2021, when it grabbed market share from Huawei.

Its rival was crippled by U.S. sanctions.

But the bump has proved short lived, with smartphone sales down 29% in the latest period.

Xiaomi is hunting for new markets as a result.

Earlier this month it said it had started testing self-driving vehicles in select cities in China.