Xiaomi Revenue Fails to Meet Expectations as Competition from Oppo, Vivo Intensifies

Xiaomi reported a lower-than-expected 8.2 percent increase in third-quarter sales on Tuesday, hampered by increased rivalry from domestic competitors Oppo and Vivo. In the three months ending September 30, sales increased to CNY 78.06 billion. According to Refinitiv statistics, analysts projected CNY 79.20 billion. Xiaomi blamed fluctuations in the valuation of firms in its investment portfolio for the 84 percent drop in profit to CNY 788.6 million.

Xiaomi made a profit of CNY 5.18 billion after one-time gains and losses, which was substantially in line with expert projections of CNY 5.09 billion. Xiaomi's smartphone revenue increased by only 0.4% to CNY 47.8 billion. According to research company Canalys, overall smartphone sales in China declined 5% from July to September.