Chinese smartphone giant Xiaomi’s sales growth slowed dramatically in the third quarter of 2021 after rival Apple had a resurgence and difficulties with supply chains saw the influx of vital components limited, reports Caixin. The Beijing-based company said it predicts shortages of the chips that go into its devices and smart appliances to persist into 2022 before easing around the second half of the year.
Despite the supply crunch, which has hit multiple industries from cars to PCs, Xiaomi said it plans to ship roughly 190 million smartphones in 2021—a rise of about 29% from last year.
Revenue climbed 8% to RMB 78 billion ($12.2 billion) in the September quarter, in line with analysts’ projections but well off the 64% pace of the previous three months. Net income plummeted 84% to RMB 788.6 million after the company took a RMB 3.5 billion hit from losses on investments, echoing major write-downs that its tech peers have reported in a quarter hurt by China’s decelerating economy and market ructions.
“We faced fairly big pressure in third quarter” from chip shortages, President Wang Xiang told reporters after the results. “This will continue in the fourth quarter but will start to ease in 2022.”