20% of Xiaomi’s income was down, and COVID in China is still a problem for the company

20% less money was made by Xiaomi, and COVID in China is still hurting sales. The second quarter’s revenue for the Chinese smartphone manufacturer saw a significant decline. The Chinese smartphone market’s fall was the cause.

Since China accounts for the majority of smartphone sales, ongoing virus limitations have a negative impact on consumer demand.

Sales for the corporation dropped from $12.9 billion to $10.31 billion in a year, exceeding estimates and exhibiting a more significant decline than the prior quarter. By the way, the business revealed a loss in revenue for the first time since becoming public in the prior quarter.

Things get considerably worse with net income. The indicator dropped by 67%, which is far more than experts had predicted.

China’s consumption is the cause of this. After store closures in Shanghai and other places throughout the first half of the year, the demand for commodities is steadily increasing.

The world’s second-largest economy, according to data released this week, unexpectedly slowed down in July.

This suggests that China is still working to recover from the economic blow induced by COVID restrictions in the June quarter. The long-stagnant Chinese smartphone market has been particularly badly struck by the recession in the area.