Xiaomi reported a 6.1% year-on-year drop in revenue to RMB 108.9 billion (USD 16.2 billion) for the second quarter of 2026, driven largely by decreased smartphone sales, according to KrASIA. The company’s adjusted net profit fell sharply by 42.6% to RMB 6.2 billion (USD 920 million) during the same period.
Reported profit also declined by 20.3%, reaching RMB 9.5 billion (USD 1.4 billion) in Q2 2026. Despite the downturn in its core smartphone business, Xiaomi noted an increase in electric vehicle sales, reflecting a strategic shift towards expanding its presence in the EV market.
For Japanese investors and market watchers, Xiaomi’s mixed earnings highlight the challenges facing smartphone makers amid shifting consumer preferences and intensifying competition, while also underscoring the growing importance of EV ventures in the broader tech and automotive sectors.