Chinese smartphone maker Xiaomi on Tuesday reported a lower-than-expected 8.2 percent growth in third-quarter revenue, hurt by sharp competition from domestic rivals Oppo and Vivo.
Refinitiv data shows that sales rose to CNY 78.06 billion (approximately Rs 90,910 crore) in the three months to September 30. Analysts had expected CNY 79.20 billion (about Rs 92,300 crore).
Profit declined by 84 per cent to CNY 788.6 million (approximately Rs 920 crore), which Xiaomi Its investment portfolio has been attributed to changes in valuations of companies.
Excluding one-time profit and loss, Xiaomi made CNY 5.18 billion (about Rs 6,040 crore) in profit, which is roughly in line with average analyst expectations for CNY 5.09 billion (about Rs 5,930 crore).
Xiaomi’s smartphone revenue grew just 0.4 percent to CNY 47.8 billion (about Rs 55,655 crore).
According to research firm Canalys, overall smartphone sales in China declined by 5 percent in the July-September period.
Xiaomi has managed to garner market share this year as its flagship rival lags behind Huawei, which saw its smartphone business tank after US sanctions.
But the company hasn’t grown at the same rate as its best-selling rivals. Opposition And Vivo, whereas Respect – a spin-off brand of Huawei – surpassed Xiaomi to become China’s third-largest smartphone maker in terms of market share in the third quarter.
Canalys said Xiaomi’s shipments to China grew just 4 percent year-on-year in the third quarter.
Faced with stiff competition in a shrinking market, the company has responded by making an aggressive push into brick-and-mortar retail, an area in which it has long been lagging behind.
In late October, Xiaomi announced that it had opened its 10,000th store in China, and is committed to tripling that count over the next two to three years.
© Thomson Reuters 2021