Xiaomi Reports Q2 Margin Slump, EV Losses Grow
Xiaomi’s smartphone margins fell to 8.5% as rising memory costs and tougher competition weighed on profitability, even as the average selling price climbed and shipments fell about 26.5% to 31.2 million. In H1 2026 the group’s net profit dropped 37.6% to 14.2 billion yuan and revenue declined 8.4%, with the smartphone×AIoT segment posting a 7.5% drop in phone revenue in Q2 despite strong EV deliveries and ongoing losses in the EV/AI initiatives.
