By David Ho

Investing.com – China’s Xiaomi (OTC.) Corp. (HK.:) on Tuesday announced an 8.2% jump in third-quarter revenues. This performance is due to the competition from other smartphone manufacturers.

By 11:57 ET (4:57 GMT), shares fell 6.96%, to HKD19.26 ($2.47)

Xiaomi’s smartphone sales make up the majority of their revenue. According to Xiaomi, its smartphone sales increased 0.4% to CNY47.8 Billion ($7.49 Billion) during the three-month period ending Sept. 30,

Smartphone shipments decreased 5.8% in the third quarter compared to the previous year, falling to 43.9 millions units. Global chip shortages were cited as the cause of the decline.

Xiang Zhang, president of Xiaomi said during an earnings call that his company was “working hard” in order to get supplies in foreign markets for its 4G handsets.

According to him, the shortage will last for the first half next year. However, he believes Xiaomi will still “maintain very strong growth” in 2022.

Although overall sales rose to CNY78.06 Billion in the third Quarter of 2021, they fell below a Refinitiv market estimate of CNY79.20 Billion.

Xiaomi was able to gain market share in China, despite its rival Huawei Technologies Co Ltd being struck by sanctions. But, the company has faced stiff competition from Oppo and Vivo as well as Honor spinoff, Huawei Technologies Co Ltd.

Honor surpassed Xiaomi for the No. 3 spot in China’s smartphone market share for the July-September quarter, according to market analyst firm Canalys.

Canalys reported that Xiaomi’s sales in China increased only 4% over the same period last year. However, overall smartphone sales fell by 5%.

Xiaomi has responded to this by emphasizing brick-and-mortar sales. The company has opened 10,000 stores in China since last month. The company plans to double the amount of stores in the coming two- to three years.

In March, the company stated that it planned to spend $10 billion on electric vehicles (EVs) in order to get into this market. The company expects to begin mass production of EVs by the second half of 2024.

Xiaomi can also make a profit by selling consumer hardware and online ads. This company has seen its internet services unit grow 27% over the past year. It makes most of its revenue through advertising across different apps.

Xiaomi’s profit was CNY5.18 Billion, less one-time losses and gains. This is in contrast to the CNY5.09 trillion analyst expectation.