(CNN Business) Xiaomi made 43.9 million global smartphone shipments in the third quarter of 2021, down 6% from the previous year, slipping one position to the third in the industry.
Xiaomi’s slump in the third quarter smartphone shipments reflected increasing competition and global chip constraints. The smartphone maker expects chip issues to persist through the first six months of 2022.
The chip issues had more impact on the Chinese smartphone maker since it had to deal with a wider range of components to produce about 50 different models of smartphones, compared to Apple’s 14.
The company’s lower shipments allowed Apple to take the second position. Xiaomi had overtaken Apple to the second position in the summer and had soaring shipments in the quarter that ended June.
Tarun Pathak, an analyst at Counterpoint, says Xiaomi cannot be written off despite the current woes, expecting it to jump next year, with boosts from upcoming events, which include the Chinese New Year.
Xiaomi has plans to venture into electric cars and eyes its first mass-produced vehicles in the first six months of 2024. The company’s revenue rose 8% to 78.1 billion yuan in the third quarter from the prior year.
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