Xiaomi Grows, But Does Not Beat Market Expectations In The Quarter

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Xiaomi: The Chinese manufacturer Xiaomi released this Tuesday (23) the company’s financial report with the results for the third quarter of 2021, which ended at the end of September this year. Overall, the news is almost all positive and indicates that the company is following an accelerated pace of growth, despite a series of obstacles affecting the entire industry.

The brand’s total revenue grew 8.2% compared to the same period last year, while the net income with corrections increased by 25.4%.

Of that number, revenue generated by smartphones sold rose 0.4% in the period — and that was the worst performance by a division in the quarter. The internet services sector soared by 27%, while the internet of things and lifestyle segment grew by 15.5%.

Stones on the way

However, the giant also invested heavily and was impacted by “market sentiment towards the technology sector in China”, in addition to the well-known shortage of semiconductors in the industry and growing competition from other Chinese brands in the smartphone segment.

For so many reasons, not all the news was good — and at the same time it reported growth, Xiaomi’s shares were down 7% at the start of trading on Wednesday. The company, for example, failed to live up to some market and investor expectations: total sales reached a staggering 78.06 billion yuan for the quarter, while analysts’ target was 79.20 billion yuan.

In addition, despite the increase in revenue, the number of cell phones sent for sale dropped by 5.8% and remained “only” at 43.9 million units. Still, Xiaomi remains the world’s second-largest mobile phone maker, just behind Samsung.