Within three months, Xiaomi has lost its position as the world’s second-largest company due to a global shortage of chips and stiff competition from other companies.
According to Counterpoint Research and Canals, the Chinese company overtook Apple to take second place between April and June, but that lead ended in the July-September quarter.
Xiaomi’s quarterly report, released on November 23, also states that its smartphone business has been severely affected by the shortage of semiconductors.
The chips crisis is expected to continue into the first half of 2022.
Xiaomi President Wang Xiang said at the launch of the quarterly report that this year has a special background and a global shortage of parts, which is a big challenge for us.
Xiaomi sold 43.9 million smartphones worldwide in the third quarter of 2021, down 6% from the same period last year.
The company has made smartphones the mainstay of its business, including other devices such as home appliances and is set to begin production of electric vehicles in 2024.
Xiaomi has been facing supply chain problems since June, and Counterpoint Research Director Tarun Pathak said that although the shortage has affected all companies, it is a major headache for Xiaomi due to its numerous models. Are
During the third quarter, the company introduced more than 50 different smartphone models for sale in the market, due to which it needs a large number of parts.
Compared to Apple’s specific models, it did not have much of a problem and it managed to regain the second position in the third quarter.
Apple also benefited from the iPhone 13 and increased its global market share to 15% in the third quarter, one percentage point higher than Xiaomi.
But according to Tarun Pathak, Xiaomi cannot be left out of the competition and she may soon regain the second position.
He said that Xiaomi’s goal is to get the number one position behind Samsung and that too is not impossible.