Xiaomi Profit Plunges 43% to 6.22 Billion Yuan as Memory Shortage Hits Smartphone Sales
Updated
Updated · Bloomberg · Aug 18
Xiaomi Profit Plunges 43% to 6.22 Billion Yuan as Memory Shortage Hits Smartphone Sales
2 articles · Updated · Bloomberg · Aug 18
Summary
Adjusted net income fell 43% to 6.22 billion yuan ($922 million) in the June quarter, marking Xiaomi’s third straight profit decline and missing expectations.
A persistent global memory shortage deepened the downturn, hitting one of the world’s largest smartphone makers as component constraints weighed on production and sales.
Revenue slipped 6.1%, while smartphone revenue dropped 7.5% after Xiaomi cut shipments of mid- to low-end devices; price increases only partly offset the shortfall.
The results underscore how the prolonged memory crunch is still pressuring handset makers’ volumes and earnings even as companies try to defend margins with higher prices.