Xiaomi Corp. reported an 18.9 percent drop in its revenues on Wednesday as the consumer demand for smartphones remained sluggish.
Sales in the first three months of 2023 totaled 59.5 billion yuan, down from 73.35 billion yuan during the same period the year before, closely in line with analyst projections of 59.43 billion yuan.
Net income rose by 13.1 percent to 3.23 billion yuan up from 2.86 billion yuan the year before.
According to Reuters, the Chinese economy has recovered since late last year, when it removed its strict economic controls, but consumers are still cautious with their spending.
Over that period the Chinese smartphone sector did not bounce at all while the total sales in China fell by 11 percent in the first quarter.
Xiaomi is making investments in the automobile industry in an effort to expand its business beyond smartphones.
In the first half of 2024, the company intends to begin mass producing its first automobile.