Xiaomi is one of the well-known companies and has been getting a lot of recognition and fame these days. In the third quarter of the year, Xiaomi has a little setback due to the global chip shortage and fierce competition.
Xiaomi, which is a Chinese company, has gained a lot of fame recently and became the second-biggest smartphone maker in the world but later it fell back to third place behind Apple in the three months ended September, says the Counterpoint Research and Canalys.
On Tuesday, Xioami posted its earnings and said that their smartphone business had been drastically affected due to the shortage of semiconductors which is going on, and further it is expected to continue through the first half of 2022.
“This year, there is a very special background, and that is there is a shortage of components globally,” Wang Xiang, Xiaomi’s president, said on an earnings call. “The shortage is a big challenge to us.”
Almost 43.9 million global smartphone shipments were logged by the company in the third quarter of 2021, which was 6% down compared to the same period last year.
Xiaomi said that its smartphones are “the cornerstone” of its business, which includes other connected devices such as home appliances, etc. Recently, the company has been planning and even announced its push into electric cars and they plan to mass-produce its first electric vehicle in the first half of 2024.
After leapfrogging Apple to become the world’s second best-selling manufacturer this summer, it piqued the interest of investors. In the three months ending in June, the Beijing-based company’s exports surged, trailing only those of Samsung (SSNLF).
Xiaomi, on the other hand, has been struck hard by supply chain issues since then.
While component shortages had impacted nearly every manufacturer, Xiaomi, according to Tarun Pathak, a research director at Counterpoint, had to deal with more issues due to its broad lineup.
According to him, the company had over 50 smartphone models on the market in the most recent quarter, compared to approximately 14 for Apple.
That adds complexity and “becomes challenging,” said Pathak. “Because you have to deal with a range of components.”