Xiaomi's costs are rising faster than its sales can absorb

DIGITIMESAugust 19, 2026en

Xiaomi Corporation's second quarter showed a company being squeezed from both ends of its business at once: a surging memory-chip bill eating into its core smartphone margins, and its smart EV, AI, and other new initiatives segment still reporting a loss even as vehicle deliveries grow. Revenue for the three months ended June 30, 2026, fell 6.1% year-on-year to CNY108.92 billion (US$16.13 billion), and the company's preferred profitability gauge, adjusted net profit, nearly halved, down 42.6% to CNY6.22 billion — a far steeper decline than the top line, signaling that cost pressure, not just demand, is doing the damage.

This is a short summary published by AI Global Wire. The full article is owned and hosted by DIGITIMES — open it there to read it in full.