आईसीटी समाचार
Xiaomi reported a lower-than-expected 8.2 percent increase in third-quarter sales on Tuesday, hampered by increased rivalry from domestic competitors Oppo and Vivo. In the three months ending September 30, sales increased to CNY 78.06 billion. According to Refinitiv statistics, analysts projected CNY 79.20 billion. Xiaomi blamed fluctuations in the valuation of firms in its investment portfolio for the 84 percent drop in profit to CNY 788.6 million.
Xiaomi made a profit of CNY 5.18 billion after one-time gains and losses, which was substantially in line with expert projections of CNY 5.09 billion. Xiaomi's smartphone revenue increased by only 0.4% to CNY 47.8 billion. According to research company Canalys, overall smartphone sales in China declined 5% from July to September.
Xiaomi has gained market share this year as a result of its main competitor Huawei's retreat, which saw its smartphone business slump as a result of US sanctions. However, the business has not risen at the same rate as top-selling rivals Oppo and Vivo, while Honor, a Huawei spin-off, surpassed Xiaomi to become China's third largest smartphone maker in terms of market share in the third quarter.
Xiaomi's shipments in China increased only 4% year over year in the third quarter, according to Canalys. Faced with fierce competition in a decreasing industry, the corporation has reacted by making a big push into brick-and-mortar retail, which it has long neglected. Xiaomi said in late October that it has launched its 10,000th store in China, with plans to triple that number in the following two to three years.
