Xiaomi Lost 20 Million Unit Sales Amid Chip Crisis

The Chinese smartphone manufacturer Xiaomi apparently has massive problems keeping its production running in the usual way due to the ongoing poor availability of various chips. Now you have to cut the forecast for this year significantly.

As Xiaomi recently announced in the course of the announcement of its latest business figures, the company will probably be able to sell “only” around 190 million smartphones this year. This makes it clear that even the largest “players” in the international market have great difficulties caused by the lack of chips.

Xiaomi spoke first time about the chip crisis

Although the forecast that has now been announced still means a significant increase in sales for Xiaomi smartphones, this would be around 30 percent more than in 2020. However, a few months ago Xiaomi had set the ambitious goal of selling up to 210 million devices this year to want.

According to Nikkei Asia, Xiaomi President Wang Xiang also confirmed to press representatives yesterday that the pressure on the company had increased significantly in the fourth quarter of 2021. The chip crisis will affect 10 to 20 million devices, according to the company’s manager. According to him, the effects of the bottlenecks will be felt in the further course of 2021 and also in the first half of 2022, it said.

Based on its communication with the suppliers, Xiaomi assumes, according to Wang, that a significant improvement in the availability of most of the currently scarce chips can be expected in the second half of 2022. So far, Xiaomi had never given any information about how much the global chip crisis is affecting the company.

Overall, however, the Chinese manufacturer is doing well. Although demand in China is falling somewhat, interest in the company’s products in other markets is still high, said Wang. Most recently, Xiaomi was able to increase its sales in the third quarter compared to the same period of the previous year by 8.2 percent to the equivalent of 12.2 billion dollars. The profit increased by 25.4 percent to 5.17 billion dollars.