Xiaomi Revenue Loss: Chinese smartphone companies are accused of tax evasion in the country. The list of these charges includes Xiaomi, Vivo and Oppo. In the meantime, another bad news has come out for Xiaomi. Xiaomi does business of smartphones and other electronic products worldwide. In China, the company sells and manufactures everything from consumer goods to smartphones, but for the first time, the company has suffered a big loss at the level of revenue.
In fact, the revenue of Xiaomi Corporation decreased in the second quarter and the main reason for this is believed to be the shrinking of the world’s largest smartphone market. In China, the income of a company like Xiaomi has also decreased amidst the restrictions of Covid-19. Year-on-year Xiaomi’s revenue fell 20 percent to 70.17 billion yuan (about $10.31 billion) in the second quarter of the year.
Xiaomi Revenue Loss: Company’s Revenue is Declining
In this way, the revenue of the company has decreased compared to the last quarter. This is the first time after the listing that the company’s revenue has decreased. According to the data, in the month of July, the economy of China has fallen unexpectedly. The smartphone market of China has been particularly affected by this slowdown.
Apart from this, the year-on-year smartphone units shipments decreased by 10% in the second quarter. More than half of the revenue of Xiaomi comes from the sale of smartphones. Xiaomi’s smartphone sales have fallen by 29 percent, which is the worst period ever.
Xiaomi Revenue Loss: Accused of Tax Evasion
Significantly, in the year 2021, there was an increase in the sales of Xiaomi, after which the company overtook Huawei. The second largest market for Xiaomi outside China is India. In India too, the company is facing challenges. Here the company has been accused of tax evasion and investigation is going on in this matter.
Indian agencies have seized $725 million worth of Xiaomi assets. The company has been accused of irregularities in payment of royalty. However, Xiaomi has denied these charges.
Know more information about Official Website Xiaomi