Xiaomi's adjusted second-quarter profit falls as memory costs rise

Xiaomi reported adjusted net income of 6.22 billion yuan in the second quarter, down about 43% from a year earlier, as higher memory costs and competition weighed on its business. Revenue fell 6.1% to 108.9 billion yuan and overall gross margin slipped to 19.8%, according to the report. Handset revenue declined 7.5% to 42.1 billion yuan, while smartphone gross margin narrowed to 8.5% from 11.5% a year earlier. The company said its EV, AI and other new initiatives generated about 23% of revenue.