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.
17 Articles
17 Articles
Xiaomi justifies a fall of 37.8% in profit with geopolitical instability, "significant increases in key component costs" and also more intense competition.
Xiaomi had an adjusted net profit of US$ 923.05 million (6.22 billion yuan) in the second quarter of 2026, a decrease of 42.6% compared to the same period last year, informed the company in its quarterly balance sheet.
Xiaomi ‘in no rush’ to turn vast AI spending into profits despite earnings slump
Chinese technology giant Xiaomi has said it is “in no rush” to convert its large investments in artificial intelligence into profit, after recording another decline in net profits in the second quarter amid intense competition and cost inflation. “Our investment in AI is currently still in a phase of large-scale input. However, as a large corporation, Xiaomi is in no rush to pursue immediate monetisation,” said Alain Lam, the firm’s vice-preside…
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