Xiaomi posts 43% Q1 net profit drop, misses estimates
Xiaomi just reported a 43% drop in net profit for the first quarter, mainly because memory chip prices went up and smartphone sales slowed down.
The company made 6.1 billion yuan ($899 million), which was less than analysts expected.
Xiaomi phones slump, EV losses persist
Smartphone shipments fell by 19%, bringing revenue down by more than 12%. Gross margins also slipped as parts got pricier and competition heated up in China.
On the electric vehicle side, Xiaomi saw some revenue growth but is still facing big losses from heavy investments.
EV deliveries dropped sharply compared to last quarter, though they are slightly up from last year.
Xiaomi readies Europe EV entry 2027
To stay competitive, Xiaomi launched a more affordable YU7 SUV and is gearing up to enter the European EV market by 2027, hoping these moves will help them ride out tough times in China's auto industry.