Xiaomi falters in quest to beat Samsung, Apple as sales slow in third quarter amid global chip shortage, stiff competition in China
- Xiaomi posted revenue of US$12.2 billion in the third quarter – up 8 per cent from a year earlier, but missed analysts’ estimates
- The Beijing-based smartphone giant’s net profit was down 84 per cent to US$123.5 million in the same period
“For Xiaomi, the supply side problems are relatively bigger than weaker demand [in China],” Wang said. He added that the unstable supply of components makes it a challenge to plan production.
While the company projected the chip shortage to remain severe in the fourth quarter, it hoped that this supply chain situation could improve next year, according to Wang.
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The rise of Chinese smartphones
Beijing-based Xiaomi’s revenue rose just 8.2 per cent in the third quarter to 78.1 billion yuan (US$12.2 billion), as smartphone shipment volume declined. That was below analysts’ average estimate of 79.2 billion yuan, according to Refinitiv data.
Net profit was down 84 per cent to 788.6 million yuan in the same period, which Xiaomi attributed to 3.5 billion yuan in losses from market investments.