Xiaomi’s profit drops again as the memory crunch squeezes its phones
Xiaomi’s profit fell again in the second quarter. A global memory shortage kept pushing up the cost of its phones. The Chinese company posted its third straight quarterly profit decline, Bloomberg reported. Adjusted net income dropped about 43 percent to 6.22bn yuan ($922mn).
The reported figure was less severe. Net profit fell 20.5 percent, The Wall Street Journal said. Overall gross margin slipped to 19.8 percent. Both measures missed forecasts. Reuters reported a 42.6 percent fall in adjusted profit. Analysts had expected 6.6bn yuan on average, according to LSEG data.
Revenue fell 6.1 percent from a year earlier to 108.9bn yuan, about $16.2bn. That also came in short. Analysts had forecast 112.2bn yuan, Reuters said. Xiaomi blamed the result on component costs and competition. “Significant increases in key component costs, including memory, along with intensified industry competition, continued to create headwinds for our business,” the company said in its...
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