Xiaomi Q2 net profit fell 43% to CNY6.2 billion

Xiaomi reported Q2 net profit of CNY6.2 billion ($919 million), down 43% year on year, while revenue fell 6.1% to CNY108.9 billion.

TL;DR

• Xiaomi said Q2 net profit fell 43% to CNY6.2 billion and revenue declined 6.1% to CNY108.9 billion.
• The company attributed the decline to intensified competition and higher key component costs, including memory.
• Smartphone revenue fell 7.5%, and Omdia estimated Xiaomi smartphone shipments at 31.2 million units, down 26%.
• Xiaomi president Lu Weibing said memory price increases had started to slow and expected that trend to continue in H2.

Xiaomi said intensified industry competition and significant increases in key component costs, including memory, contributed to the year-on-year decline in its Q2 results. The company said the global memory crunch affected its top line during the quarter.

Xiaomi said smartphone revenue fell 7.5% in Q2 because shipments of low-to-mid-tier devices declined, although price increases partly offset the drop. Research firm Omdia estimated Xiaomi smartphone shipments at 31.2 million units in the quarter, down 26% year on year.

Bloomberg reported that suppliers including Samsung Electronics and SK Hynix prioritised production of advanced AI-capable chips for data centres, reducing memory supply for devices and increasing prices. On an earnings call, Xiaomi president Lu Weibing said the pace of memory price increases had started to slow and that the trend was expected to continue in the second half.

Related questions

• What were Xiaomi's Q2 net profit and revenue figures?
• Why did Xiaomi say its Q2 results declined year on year?
• How many smartphones did Xiaomi ship in Q2 according to Omdia?
• What did Lu Weibing say about memory prices in the second half?