China's smartphone and electric-vehicle maker Xiaomi (1810) saw its net profit fall 37.6 percent year-on-year to 14.2 billion yuan (HK$16.52 billion) for the first half of 2026, weighed down by rising component costs and intensified industry competition.
Adjusted net profit also dropped 42.8 percent to 12.29 billion yuan during the period, while revenue went down 8.4 percent to 208.06 billion yuan.
For the second quarter alone, its adjusted net profit slipped 42.6 percent to 6.22 billion yuan, missing the market expectation of 6.6 billion yuan.
The second-quarter revenue stood at 108.9 billion yuan, down 6.1 percent, which is also lower than analysts' estimate of 112.2 billion yuan.
Revenue from its smartphone × AIoT segment decreased by 11.3 percent to 84 billion yuan, of which smartphone income dropped by 7.5 percent to 42.1 billion yuan.
This decline came as its smartphone shipments fell 26.5 percent to 31.2 million units amid weakened global demand driven by higher component prices, while its impact on smartphone sales was partly offset by a record-high average selling price of 1,351 yuan, up 25.9 percent.
Revenue of its smart EV, artificial intelligence, and other new initiatives segment rose 17.1 percent to 24.9 billion yuan in the three months ended June, including 23.9 billion yuan from the electric vehicle business, which is 15.9 percent higher from a year ago.
The company delivered 104,199 vehicles in the quarter, representing a growth of 28.2 percent.
Income from IoT and lifestyle products decreased 19.2 percent to 31.3 billion yuan, while that of internet services inched down 0.6 percent to 9 billion yuan.
