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Sales of Xiaomi smartphones fell noticeably in the III quarter due to shortages – Apple regained second place in the market

In the third quarter, Xiaomi faced the consequences of the global chip shortage, as mentioned in the latest quarterly report. According to Counterpoint Research and Canalys, the Chinese company, which only recently became the world’s second largest smartphone maker, returned to third place in the third quarter, losing its position to Apple.

Image Source: Barcroft Media / GettyImages

Image Source: Barcroft Media / GettyImages

In reporting its financials for the quarter, Xiaomi said its business was hit hard by an ongoing chip shortage, which is expected to persist in the first half of next year. In the third quarter of 2021, the company sold 43.9 million smartphones worldwide, down about 6% from the same period a year earlier. Xiaomi has called smartphones the “cornerstone” of its business, which also includes a number of other products. This year, Xiaomi announced the launch of an electric vehicle business. The company said it will begin mass production of its debut model in the first half of 2024.

The company surprised investors this summer after it surpassed Apple to become the world’s second largest smartphone maker. In the second quarter, the company’s sales rose sharply, thanks to which Xiaomi was second only to Samsung in terms of the number of smartphones sold. Since then, the company has been hit hard by supply chain problems.

Counterpoint reports that due to the vast range of devices it produces, Xiaomi has been hit harder than some other companies. In the third quarter, the company offered over 50 different smartphone models, while Apple sold 14 different devices. In addition, Apple benefited from strong iPhone 13 sales. A recent Canalys report showed that Apple accounted for 15% of global smartphone shipments, up 1% over Xiaomi.

Nevertheless, analysts are confident that the Chinese company has every chance of regaining its second place in the market, especially given the fact that it usually performs well in the first half of the year. In addition, it is possible that Xiaomi will eventually become the world’s leading smartphone manufacturer. Analysts say the company needs to maintain its leadership in two of its key markets, India and China, while working to expand its presence in countries such as the United States.

Xiaomi’s total revenue in the third quarter was $ 12.2 billion. This is 8% more compared to the same period last year, but much less than analysts expected. The company’s net income rose 25% to $ 814 million, slightly above analysts’ forecasts.

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Johnson Smith

Johnson Smith is interested in Home Theater & Audio, Smart Tech, Google News & Products, How To, Apple News & Products, Cell Phones, Automotive Technology.

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