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Xiaomi revenue misses estimates as competition intensifies

SHANGHAI, Nov 23 (Reuters) – China’s Xiaomi Corp (1810.HK) on Tuesday reported a smaller-than-expected 8.2% rise in third-quarter revenue as smartphone gross sales progress stalled amid intensifying competition from rivals.

The firm, which will get the overwhelming majority of its revenue by promoting cell handsets, stated smartphone revenue rose 0.4% to 47.8 billion yuan ($7.49 billion) within the three months to Sept. 30.

Yet quarterly smartphone shipments fell 5.8% on the 12 months, from 46.6 million models to 43.9 million models. The firm pointed to the worldwide chip scarcity as the reason for the decline.

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Overall gross sales rose to 78.06 billion yuan, lacking a market estimate of 79.20 billion yuan from Refinitiv.

Xiaomi, which had managed to seize market share in China after the retreat of sanctions-hit rival Huawei Technologies Co Ltd (HWT.UL), has lately misplaced floor to not simply top-sellers Oppo and Vivo, but in addition Huawei spinoff model Honor.

Honor edged previous Xiaomi to seize the No. 3 spot by way of smartphone market share in China within the July-September quarter, in response to Canalys.

Xiaomi’s shipments in China grew simply 4% year-on-year within the interval, Canalys stated. Overall smartphone gross sales within the nation fell 5%.

Xiaomi has responded to the competition with aggressive pushing into brick-and-mortar retail. Last month, the corporate opened its 10,000th retailer in China, and dedicated to tripling that rely over the following two to 3 years. learn extra

The firm, which stated in March it will spend $10 billion to enter the electrical automobile (EV) market, stated on Tuesday it expects to launch mass manufacturing of EVs within the first half of 2024.

Xiaomi additionally makes cash by promoting on-line advertisements and different varieties of shopper {hardware}. Growth in its web providers unit, which makes cash primarily by inserting advertisements throughout numerous apps, jumped 27% year-on-year.

Excluding one-time good points and losses, Xiaomi earned 5.18 billion yuan in revenue, largely according to the common analyst expectations for five.09 billion yuan.

($1 = 6.3878 Chinese yuan)

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Reporting by Josh Horwitz; Editing by Ana Nicolaci da Costa and Bernadette Baum

The Xiaomi logo is seen at a Xiaomi shop in Shanghai, China May 12, 2021. REUTERS/Aly Song GLOBAL BUSINESS WEEK AHEAD

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