Tuesday, 18 August, 2026
Component Costs Bite: Xiaomi's Q2 Profit Sinks 42.6%
By TechShots Studio
Xiaomi posted a 42.6% drop in second-quarter net profit, severely squeezed by surging component costs—particularly soaring memory chip prices. Global smartphone shipments slipped 6% year-over-year as supply chain inflation forced price hikes on mid-range models. While revenue fell 6.1% to 108.9 billion yuan ($16.15 billion), double-digit growth in its EV and AI ventures helped cushion broader consumer demand weakness.