Leading Chinese global tech player Xiaomi released its Q3 2021 financial report recently which indicates a lower-than-expected 8.2% rise in revenue. The revenue numbers could point to stiff competition in the global smartphone market in the wake of the company’s impressive overall performance in 2021.
The global smartphone market is becoming highly saturated in some countries and smartphone makers are seeking more innovative products to maintain their market share. Xiaomi’s shares declined by about 7% when the market opened on Wednesday. Smartphone revenue rose by 0.4% to 47.8 billion yuan ($7.49 billion) within the quarter. This was despite a 5.8% decline in smartphone shipments to 43.9 million units.
The company stated that the global chip shortage also affected its numbers. Xiaomi says it’s working hard to get necessary chip supplies to meet its projections for 4G phones in the new year. Overall sales rose to 78.06 billion yuan in Q3 2021 but missed the industry projection of 79.20 billion yuan.
Xiaomi has continued to pursue an aggressive marketing campaign through its retail stores across China. The company currently operates 10,000 stores in China and is still counting.
The financials also indicated that Xiaomi earned 5.18 billion yuan in profit, ahead of industry projections. The company grew in market share previously due to Huawei s decline, but Chinese competitors like Oppo have had a better growth trajectory and a higher market share.
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