Xiaomi’s Q2 Profit Slides 42.6% on Component Cost Pressure
- On Tuesday, Xiaomi Corp reported a 42.6% decline in second-quarter net profit, missing analyst estimates as higher costs for memory and other components squeezed margins across smartphones and electric vehicles.
- Smartphone revenue fell 7.5% to 42.1 billion yuan, with margins shrinking to 8.5% from 11.5% a year earlier, clipped by higher prices for key components. Research firm Omdia noted Xiaomi was highly exposed to memory cost inflation.
- Total second-quarter revenue reached 108.9 billion yuan, missing the average analyst estimate of 112.2 billion yuan, while Xiaomi shipped 31.2 million smartphone units, a 26% decline from a year ago.
- Xiaomi's electric vehicle business reported 23.9 billion yuan in revenue, up 15.9% annually, with 104,199 vehicles delivered, though operations related to new EV and artificial intelligence initiatives posted a 2.6 billion yuan loss.
- To diversify revenue streams beyond its saturated smartphone business, Xiaomi launched the SkyNomad SUV series in July and plans to enter European markets by 2027, seeking new growth drivers.
26 Articles
26 Articles
Xiaomi Q2 report: smartphone sales are down as the average selling price goes up
Xiaomi has reported a revenue of CNY 108.9 billion ($16.2 billion) for Q2 2026 – this is with a gross profit margin of 19.8% and an adjusted net profit of CNY 6.2 billion ($919 million). Revenue breakdown for Xiaomi’s Q2: smartphones & AIoT vs. EVs, AI and others Most of that came from smartphones and AIoT devices – CNY 84.0 billion. This division reported a gross profit margin of 20.0%. The Smart EV, AI and Other New Initiatives division brough…
Xiaomi profit falls again on memory crunch
Xiaomi’s profit fell again in the second quarter. A global memory shortage kept pushing up the cost of its phones. The Chinese company posted its third straight quarterly profit decline, Bloomberg reported. Adjusted net income dropped about 43 percent to 6.22bn yuan ($922mn). The reported figure was less severe. Net profit fell 20.5 percent, The […] This story continues at The Next Web
Xiaomi reports RMB14.2 billion first-half net profit as revenue falls 8.4% · TechNode
Xiaomi reported first-half revenue of RMB208.06 billion, down 8.4% year over year, and net profit attributable to shareholders of RMB14.19 billion. Second-quarter revenue surpassed RMB100 billion, according to the interim-results report. The results cover Xiaomi’s smartphone, connected-device, internet-services and electric-vehicle businesses. They provide a broader view of the company’s performance than its separate announcement that SU7 delive…
Xiaomi, the world's third-largest smartphone maker, saw its net profit in the second quarter of this year halve compared to the previous year as it faced the double whammy of rising component prices and sluggish demand. While the average selling price (ASP) in the second quarter rose 26% year-on-year, shipments decreased by 26% during the same period. Xiaomi adopted a strategy to defend profitability by cutting back on low-margin products at the…
Xiaomi justifies a fall of 37.8% in profit with geopolitical instability, "significant increases in key component costs" and also more intense competition.
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