Electronics

People are replacing their phones less frequently as inflation rises and the cost of daily necessities like gasoline and food rises. Companies are reducing shipments of mobile phones and the production of their components, preparing for possible difficulties in the future.

Xiaomi, the world's third-biggest smartphone maker after Apple and Samsung Electronics Co., said on Friday that its smartphone shipments fell 26% in the April-June period compared with the same period a year earlier. , revenue from the smartphone business fell 28 percent, or $6.2 billion.

Xiaomi believes that the reasons mainly include shrinking consumer demand in China, the lockdown management implemented in the quarter due to the epidemic, and the rise in global food and fuel prices.

According to import and export data, in the same quarter, global smartphone shipments fell by nearly 9% compared with the same period last year, reaching 286 million units. IDC said the market weakness was most pronounced in China, followed by the U.S. and the rest of the world.

This slowdown isn't a performance for all mobile phone markets. In the first half of this year, sales of smartphones over $900 rose more than 20 percent from a year earlier, a segment that includes Samsung's foldable smartphones and Apple's new iPhones. In the first half of this year, only about one in 10 smartphones in the world were in the premium category, but they accounted for 70% of industry profits.