Xiaomi posts another profit drop as memory crunch lifts phone costs
AI Market Summary
Xiaomi reported a third straight quarterly profit decline as memory and other component costs rose and competition intensified, driving misses versus revenue and profit expectations and compressing gross margin. Smartphone revenue and shipments fell sharply, highlighting vulnerability to higher conventional memory prices as suppliers prioritize AI/data-center chips. EV revenue grew but could not offset handset weakness, keeping near-term earnings quality and margin visibility under pressure.
Impact level
● Medium
Affected assets
NCSKXIAOMI2USD/USDT+3.39%
AI Insight · NCSKXIAOMI2USD/USDTAI Insight
▼ Bearish
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Xiaomi Group reported a fresh earnings decline, with adjusted net profit down about 43% year on year to 6.22bn yuan and overall gross margin slipping to 19.8%. Handset revenue fell 7.5% to 42.1bn yuan as the cost of key components such as memory rose sharply and competition intensified. Electric-vehicle revenue increased 15.9% to 23.9bn yuan, but it was not enough to offset weaker phone performance.
