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

_Wednesday, August 19, 2026 at 8:05 AM EDT · Products · Latest · Tier 2 — Notable_

![Xiaomi's adjusted second-quarter profit falls as memory costs rise — Primary](https://media.thenextweb.com/2026/08/xiaomi-headquarters.jpg)

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.

## Sources

- [The Next Web](https://thenextweb.com/news/xiaomi-q2-2026-earnings-memory-crunch)

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Retrieved: 2026-08-19T18:40:32.917Z
Publisher: Tech & Business (techandbusiness.org)