China’s Xiaomi Corp reported 15% growth in quarterly revenue on Tuesday, missing estimates, as fewer people bought smartphones at home and rival Huawei grabbed market share.
China’s smartphone market, the world’s largest, is shrinking but consumers there are rallying in support of Huawei as it battles U.S. trade restrictions.
Xiaomi’s market share in China declined by a fifth in the April-June quarter even as Huawei’s share surged by 31%, according to research firm Canalys. Globally, the smartphone market shrank 2.3% in the same period, according to research firm IDC.
Xiaomi, which debuted its shares in July last year, said on Tuesday that it failed to grow smartphone shipments in the second quarter, which stood at 32 million.
“Customers are generally holding existing smartphones for longer with manufacturers hoping that 5G will provide compelling reasons for customers to upgrade their phones,” Morningstar analyst Dan Baker said in a research note.