Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Xiaomi revenue misses estimates as competition intensifies

EconomyNov 23, 2021 11:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Xiaomi logo is seen at a Xiaomi shop in Shanghai, China May 12, 2021. REUTERS/Aly Song GLOBAL BUSINESS WEEK AHEAD

By Josh Horwitz

SHANGHAI (Reuters) -China's Xiaomi (OTC:XIACF) Corp on Tuesday reported a smaller-than-expected 8.2% rise in third-quarter revenue as smartphone sales growth stalled amid intensifying competition from rivals.

Shares fell nearly 7% at the market's open on Wednesday.

The company, which gets the vast majority of its revenue by selling mobile handsets, said smartphone revenue rose 0.4% to 47.8 billion yuan ($7.49 billion) in the three months to Sept. 30.

Yet smartphone shipments fell 5.8% on the year in the third quarter to 43.9 million units. The company pointed to the global chip shortage as the cause of the decline.

On an earnings call, Xiaomi president Xiang Wang said that the company is "working hard" to obtain supplies for 4G handsets in overseas markets.

He added that he expects the shortage to persist into the first half of next year, though he still anticipates Xiaomi will "maintain very high growth" in 2022.

Overall sales rose to 78.06 billion yuan in the July-September quarter, missing a market estimate of 79.20 billion yuan from Refinitiv.

Xiaomi, which had managed to grab market share in China after the retreat of sanctions-hit rival Huawei Technologies Co Ltd, has recently lost ground to not just top-sellers Oppo and Vivo, but also Huawei spinoff brand Honor.

Honor edged past Xiaomi to grab the No. 3 spot in terms of smartphone market share in China in the July-September quarter, according to Canalys.

Xiaomi's shipments in China grew just 4% year-on-year in the period, Canalys said. Overall smartphone sales in the country fell 5%.

Xiaomi has responded to the competition with aggressive pushing into brick-and-mortar retail. Last month, the company opened its 10,000th store in China, and committed to tripling that count over the next two to three years.

The company, which said in March it would spend $10 billion to enter the electric vehicle (EV) market, said on Tuesday it expects to launch mass production of EVs in the first half of 2024.

Xiaomi also makes money by selling online ads and other types of consumer hardware. Growth in its internet services unit, which makes money primarily by placing ads across various apps, jumped 27% year-on-year.

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.

($1 = 6.3878 Chinese yuan)

Xiaomi revenue misses estimates as competition intensifies
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email