By Josh Horwitz
SHANGHAI (Reuters) -Chinese smartphone maker Xiaomi Corp posted a steep drop in second quarter revenue on Friday, as the world’s biggest smartphone market shrank, hit by strict COVID restrictions.
Sales fell 20% year on year to 70.17 billion yuan, missing estimates and marking a steeper decline from the previous quarter, when the company posted its fist-ever revenue drop since listing.
Net income fell 67% to 2.08 billion yuan, missing analyst estimates.
China’s consumer consumption has struggled to rebound from the impact of lockdowns in Shanghai and other cities in the first half of the year.
Data this week showed China’s economy slowed unexpectedly in July, indicating the world’s second largest economy is struggling to shake off the June quarter’s hit to growth from strict COVID restrictions and prompting a central bank rate cut.
China’s long-stagnant smartphone sector has been especially hit by the downturn, with unit shipments down 10% year on year in the second quarter, according to research firm Canalys.
($1 = 6.8058 Chinese yuan renminbi)
(Reporting by Josh Horwitz; editing by Jason Neely)
