Xiaomi’s mobile phone sector, which accounts for more than 60% of their total revenues, has declined in the third quarter of this year compared with the previous quarter and last year.
Wang Changwen, Dean of Changwen Business School, said Xiaomi had launched many mobile phone models this year with no special upgrades, making them uninspiring. In addition, Xiaomi has not made a significant breakthrough in the high-end market.
Li Mu, an insider in the mobile phone industry, said that Xiaomi’s mobile phone products this year are relatively unremarkable. The Mi 11 series has quality problems, so their sales growth fell in the third quarter of 2021.
The mobile phone business, which accounted for 61.3% of revenue, earmarked revenue of 47.8 billion yuan ($7.51 billion), representing an annual increase of 0.5% and a quarterly decrease of 19.1%, according to Aboluowang News.
Compared to the second quarter of this year, shipments fell by 9 million units, a decrease of 17% compared with the previous quarter. Compared to the third quarter of last year, shipments declined by 5.8%.
Xiaomi’s executives said that the disappointing shipments are due to the disruption in the supply chain and the competition from Apple’s new iPhone 13.
Li Mu added that Xiaomi’s poor business operations were also related to the slower market in general.