“The (Chinese) market has entered a full recovery stage, and… has already recovered to 80 to 90% of the normal level,” Chief Financial Officer Shou Zi Chew said on an earnings call. During the COVID-19 pandemic, people are searching for small rays of light, some hope that this will end soon. Whether its fatalities declining or some nations seemingly coming through the worst, the positives are few. Perhaps China’s industries returning to normal can provide at least some comfort that there can be some kind of normality after COVID-19. Zi Chew confirms Xiaomi’s smartphone sales declined during the first quarter because of the COVID-19 outbreak. He says he thinks demand for the company’s devices will hold up globally despite the virus only now developing towards peak levels in other countries. Zi Chew expects this to impact sales for March and April, but believes sales will bounce back. “If we take reference from China’s experience, I think smartphone demand is resilient,” said Chew. “I think it will rebound quickly.”
What This Means
What’s happening in China and to Xiaomi may provide some hope that the world can get back to normal. However, in the face of thousands still dying from COVID-19 every day, there’s no guarantee China’s recovery is a blueprint for how the virus work. In fact, there are conflicting reports coming from China about whether the outbreak has really been contained. Chinese authorities have also been accused of providing false information about the number of infected and fatalities within the country.
