What They Say
Xiaomi saw a 20% drop in revenue in Q2, year on year, below the predictions of analysts. Volume of handsets was down 22%, and revenues down 29%, further than the market drop and net income fell to $204 million (83% down).
Bloomberg reported that Xiaomi has ceded ground to local rival brands like Honor and Vivo, who’ve won over young and tech-savvy consumers with sleek designs and aggressive marketing. Bloomberg also reports that the Indian government is trying to stop Chinese makers selling low priced handsets (<$150). Demand was also weak in China.
What We Think
Apple seems to be confident it can maintain its premium position but that clearly hasn’t happened for Xiaomi. (BR)
