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Xiaomi Growth Withers After Chip Shortages Wallop Phone Sales

  • CEO expects chip crunch to persist well into 2022 but ease
  • Supply chain disruptions, Honor’s rise eroded market share
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WATCH: Smartphone producer Xiaomi Corp. and electronic vehicle maker Xpeng Inc. both reported quarterly earnings. Bloomberg’s Stephen Engle reports.Source: Bloomberg
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Xiaomi Corp. recorded its slowest pace of quarterly sales growth since early 2020 after supply chain mayhem choked off the flow of vital components and rivals like Apple Inc. eroded its market share. 

Shares in China’s largest smartphone maker slid more than 5% in Hong Kong to their lowest since September 2020, reflecting lingering concern about a global chip shortage that’s wiped billions of revenue from the automotive and electronics industries. Xiaomi foresees that deficit persisting well into 2022 before easing especially around the second half of the year. Still, it’s expecting ship roughly 190 million smartphones in 2021 -- a rise of about 29% from last year -- thanks to inroads into overseas markets and an expanding retail network.