Xiaomi sales miss estimate as rivals ramp up

China's Xiaomi reported a smaller-than-expected rise in third-quarter revenue Tuesday (November 23).

Sales rose to around $12.22 billion over the three months to the end of September.

Analysts had predicted slightly more for the smartphone maker.

Profits slumped 84% to $123 million, though Xiaomi blamed that on changes in the valuation of companies in its investment portfolio.

The company's handset revenue saw a small rise.

Xiaomi has won market share this year as key rival Huawei retreated, hurt by U.S. sanctions.

It has faced tough competition from new sources, though.

Top-selling rivals Oppo and Vivo grew faster.

Huawei spin-off brand Honor also beat Xiaomi in Q3 to become China's third largest smartphone maker in terms of market share.

With competition on the rise, Xiaomi has made an aggressive move into brick-and-mortar retail.

In late October, the firm announced it had opened its 10,000th store in China.

It has committed to tripling that count over the next two to three years.

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