Xiaomi’ global smartphone shipments fell -6% YoY in Q3 2021. Xiaomi yield its second position to Apple and ranked the third in global smartphone market by volume this quarter.

Xiaomi posted mixed picture on regional performance this quarter. Except North America, Xiaomi remains in top 3 list in all other regions. It is the second largest vendor by volume in Central Eastern Europe, and the third largest one in the rest regions. Xiaomi maintained the growth in Western Europe and in Central Latin America but lost the top leadership in Asia Pacific and in Central Eastern Europe.

Xiaomi paused its growth trajectory in Q3 2021. As same as Samsung and Apple, Xiaomi was hit by supply constraints. Meanwhile, Xiaomi is facing more fierce competition from the rising Honor in domestic market. With Honor regaining Google Mobile Service, Honor is likely to post more threat to Xiaomi’s overseas markets, most likely in the second half of next year.

Looking forward, we expect Xiaomi would stabilize its performance in Q4 2021 with improved component supply and channel inventory situation. We however caution Xiaomi to prepare for more intensified competition in global market in 2022.

Our latest report on Xiaomi Q3 ‘21: Xiaomi: Back to Third Place is published. WSS clients could access the report via this link.