Xiaomi India's profit drops 77% to ₹239 crore in FY23
What's the story
Chinese smart device manufacturer, Xiaomi, has experienced a significant drop in its profits for the fiscal year (FY) 2022-23 in India. According to regulatory filings, the company's profit plunged by 77% year-on-year (YoY) to ₹238.63 crore, a stark contrast from the previous fiscal year's profit of ₹1,057.7 crore. Additionally, Xiaomi's revenue from operations also saw a decline of about 32%, dipping to ₹26,697 crore from approximately ₹39,100 crore in FY22.
Market share
Market leadership maintained despite declining shipments
Despite a 25% decline in smartphone shipments during 2022, including three-quarters of FY23, Xiaomi continues to dominate the Indian smartphone market with a 21% share, as per the market research firm IDC. However, estimates for Xiaomi's smartphone market share in India for the March 2024 quarter vary among research analysts. Cybermedia Research pegs it at 18.6%, Counterpoint Research at 18.8%, and IDC estimates it around 13%.
Future plans
Aim to double device sales over the next decade
Xiaomi recently marked its 10th anniversary of operations in India. Over the past decade, the company has navigated several challenges with the Indian government over issues related to taxes and vendor payments. Xiaomi now aims to double its device sales over the next decade, targeting a total of 70 crore units sold from the current figure of 35 crore units sold over the last 10 years.