Chinese smartphone maker Xiaomi on Tuesday reported a smaller-than-expected 8.2% third-quarter revenue increase, hit by stiff competition from domestic rivals Oppo. and Vivo.
Refinitiv data showed that sales rose to CNY 78.06 billion (about 90,910 crore) in the three months to September 30. Analysts expected CNY 79.20 billion (about 92,300). Rs.).
Profit fell 84% to CNY 788.6 million (about Rs 920), Xiaomi due to changes in the valuation of companies in its portfolio.
Excluding the one-time profit and loss, Xiaomi made CNY 5.18 billion (about 6,040 crore) in profit, largely in line with analysts’ average expectation of CNY 5.09 billion (about 5,930 crore). ).
Xiaomi’s smartphone sales increased only 0.4% to CNY 47.8 billion (about Rs 55,655).
According to research firm Canalys, overall smartphone sales in China fell 5% in the July-September period.
Xiaomi gained market share this year due to the retreat of its main competitor Huawei, the smartphone business boomed after the US sanctions.
But the company didn’t grow at the same rate as its best-selling competitors Oppo and Vivo, when Respect – a sub-brand from Huawei – overtook Xiaomi in the third quarter to become China’s third-largest smartphone maker by market share.
Canalys said that Xiaomi’s shipments in China increased only 4% year-on-year in the third quarter.
Faced with stiff competition in a shrinking market, the company responded by launching a push into brick-and-mortar retail, an area it has long lagged behind.
At the end of October, Xiaomi announced that it had opened its 10,000th store in China and pledged to triple that number within the next 2-3 years.
© Thomson Reuters 2021
