Xiaomi’s profit drops again as the memory crunch squeezes its phones

Xiaomi’s adjusted net income fell 43% to 6.22 billion yuan and revenue dropped 6.1% to 108.9 billion yuan in Q2, missing analysts’ forecasts. A global memory shortage raised component costs, shrinking handset gross margin to 8.5% and cutting phone shipments 26% to 31.2 million units. The company’s EV segment grew about 20% while its connected-devices division remained weak.