On Wednesday, Chinese smartphone giant Xiaomi announced a notable 18.9% decline in its quarterly revenue as the consumer appetite for smartphones continues to wane.

The company's sales for the first quarter of 2023 amounted to 59.5 billion yuan, a significant drop from the 73.35 billion yuan recorded during the same period in the previous year. This aligns with the analysts' predictions, which estimated the revenue to be around 59.43 billion yuan.

Net income climbed to 3.23 billion yuan over the period, representing an increase of 13.1 % from 2.86 billion yuan a year earlier.

Total sales of China's smartphone market fell 11% in the first quarter of 2023, research firm Canalys reported in April. Xiaomi’s sales over the period fell 20%.

Citing Canalys, Xiaomi said in its earnings release that it remains third in global smartphone shipments in the first quarter of 2023 with an 11.3% market share.

In a bid to diversify away from smartphones, Xiaomi is investing in the semiconductor and auto industries. The company plans to start mass production of its first car in the first half of 2024.