Xiaomi’s third quarter results were below analyst expectations and those of the brand.
Xiaomi, a smartphone manufacturer, released its fiscal third quarter financial results for 2021 on Tuesday 23 November. The numbers are not encouraging.
However, Xiaomi’s third quarter sales were lower than expected. The brand and analysts were disappointed with the results.
The quarterly report shows that Xiaomi’s revenue rose to $ 12.2 Billion, which is only 8.2% growth. This is lower than the growth rate in the previous months.
Xiaomi grew steadily, so the Chinese company had a great business model and operating model, with adjusted net profits and total revenues that remained steady.
The company’s slowdown in growth can be attributed to increased competition on the market, as well as existing conflicts in supply chains that disrupt the flow of components within the mobile telephony industry.
Vivo and Oppo are targeting Xiaomi with a similar marketing strategy to the one that they used to attack established brands when they entered the West.
In recent months, Oppo’s and Vivo’s strategies have been steadily growing.
Honor, a Huawei brand took third place in China’s top smartphone maker, in terms ‘Market Share’, in the third quarter.
It is worth noting that Xiaomi’s European market situation is very different. Xiaomi has a stronger advantage than Oppo or Vivo when it comes to territorial implementation. Oppo, however, has excelled in its ability position itself in this market thanks to its strong relationships with distributors. European operators.
According to Canalys data, Xiaomi’s biggest problem was that its revenue from smartphone sales grew by 0.4%. In addition, Xiaomi’s mobile device sales in China dropped 5% between July-September.
In a situation of intense competition in China, the company decided to change its marketing strategy and regain momentum.