Xiaomi disclosed its financial report for the first quarter of 2022 on Thursday. Following the release, firm partner and president Wang Xiang talked about the higher average selling price (ASP) for smartphones in a financial report conference call. He said that Xiaomi would add more high-end technologies to smartphones and will strive to make quality mid-to-high-end products.
Wang Xiang said that the sales volume of Xiaomi entry-level smartphones was very large. Xiaomi smartphones’ global ASP hasn’t risen at a fast speed. Excluding entry-level devices, Xiaomi found that the smartphone ASP in the Chinese market is still growing fast. Wang added, “As we apply more new technologies in smartphones, we need higher-end hardware support, so the smartphone ASP will go further up.”
According to the financial report, Xiaomi‘s smartphones business was greatly affected by the pandemic in the first quarter, while smartphones shipments decreased by 22.1% year-on-year to 38.5 million units, mainly due to the continuous shortage of core components, repeated outbreaks of COVID-19 and conditions in the macroeconomic environment. Relatively speaking, the total revenue decreased by a smaller proportion, with a year-on-year decrease of 11.1% to 45.8 billion yuan ($6.86 billion). This was mainly due to the decline in smartphone shipments, but was partially offset by the increase in ASP.
In terms of selling price, in the first quarter, Xiaomi‘s smartphone ASP increased by 14.1% year-on-year to reach 1,189 yuan. Xiaomi shipped nearly 4 million high-end smartphones priced at 3,000 yuan or higher in Chinese mainland and 300 euros ($317) or above overseas.