Press "Enter" to skip to content

Xiaomi revenue misses estimates as competition intensifies

Amnon Free Press/Central Press Syndicate, USA. Read, Enjoy and Share the Latest US News Updates.

November 23, 2021

SHANGHAI (Reuters) -Chinese smartphone maker Xiaomi Corp on Tuesday reported a smaller than expected 8.2% rise in third-quarter revenue, hurt by intensifying competition from domestic rivals Oppo and Vivo.

Sales rose to 78.06 billion yuan ($12.22 billion) in the three months to Sept. 30. Analysts had expected 79.20 billion yuan, Refinitiv data shows.

Profit slumped 84% to 788.6 million yuan, which Xiaomi attributed to changes in the valuation of companies in its investment portfolio.

Other News:   Taiwan says it will respect Honduras vote outcome, warns again on China

Excluding one-time gains and losses, Xiaomi earned 5.18 billion yuan in profit, largely in line with the average analyst expectations for 5.09 billion yuan.

Xiaomi’s smartphone revenue rose just 0.4% to 47.8 billion yuan.

Overall smartphone sales in China fell 5% in the July-September period, according to research firm Canalys.

Xiaomi has managed to gain market share this year due to the retreat of its key rival Huawei Technologies Co Ltd, which saw its smartphone business tank following U.S. sanctions.

Other News:   European shares rise on telecom M&A; Telecom Italia soars over 20%

But the company has not grown at the same rate as top-selling rivals Oppo and Vivo, while Honor – a spin-off brand from Huawei – surpassed Xiaomi in the third quarter to become China’s third largest smartphone maker in terms of market share.

Xiaomi’s shipments in China grew just 4% year-on-year in the third quarter, Canalys said.

Facing tight competition in a shrinking market, the company has responded by launching an aggressive push into brick-and-mortar retail, a sector it has long lagged in.

Other News:   Ditch turkey for Thanksgiving, ask guests for cash — 'five, ten dollars' which 'really adds up' — to fight inflation's higher costs, NBC suggests

In late October, Xiaomi announced it had opened its 10,000th store in China, and committed to tripling that count over the next two to three years.

($1 = 6.3878 Chinese yuan)

(Reporting by Josh Horwitz; Editing by Louise Heavens, David Goodman and Ana Nicolaci da Costa)

To continue reading this news article, follow the link to the news website.

For any inquiries, contact Amnon Free Press (Amnon Jobi Jakony) by writing to editor [at] Discover a world of hyper-local news below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *