--- title: Xiaomi’s profit drops again as the memory crunch... description: Xiaomi reported its third straight quarterly profit decline, with adjusted net income down about 43% to 6.22bn yuan ($922mn) as a global memory chip shortage... canonical: https://daily.dev/posts/xiaomi-s-profit-drops-again-as-the-memory-crunch-squeezes-its-phones-f6whyouwq twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Xiaomi’s profit drops again as the memory crunch squeezes its phones | daily.dev og:description: Xiaomi reported its third straight quarterly profit decline, with adjusted net income down about 43% to 6.22bn yuan ($922mn) as a global memory chip shortage... og:url: https://daily.dev/posts/xiaomi-s-profit-drops-again-as-the-memory-crunch-squeezes-its-phones-f6whyouwq og:image: https://api.daily.dev/og/posts/f6WhYouWq.png og:image:alt: Xiaomi’s profit drops again as the memory crunch squeezes its phones og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Xiaomi’s profit drops again as the memory crunch squeezes its phones **[The Next Web](https://daily.dev/sources/tnw)** · 5 min read · 0 upvotes · 0 comments ## Summary Xiaomi reported its third straight quarterly profit decline, with adjusted net income down about 43% to 6.22bn yuan ($922mn) as a global memory chip shortage drove up component costs. Revenue fell 6.1% to 108.9bn yuan, missing forecasts, while smartphone shipments dropped 26% to 31.2mn units and gross margin narrowed to 8.5%. Suppliers like Samsung and SK Hynix have shifted production toward AI-focused chips, tightening supply of conventional memory used in phones. Xiaomi's low-cost phone mix made it more exposed than rivals. The company is leaning on its EV business, which grew, and framed its AI spending as a long-term investment with no rush to monetize. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### Why did Xiaomi's profit drop so much in its latest quarter Xiaomi's adjusted net income fell about 43% to 6.22bn yuan ($922mn) mainly due to a global memory chip shortage that raised smartphone component costs, combined with intensified industry competition. Revenue dropped 6.1% to 108.9bn yuan, missing analyst forecasts of 112.2bn yuan, while smartphone shipments fell 26% to 31.2mn units. _Track how supply chain shifts ripple through tech industry earnings on daily.dev._ ### Why is there a global memory chip shortage affecting phone makers Leading memory suppliers such as Samsung and SK Hynix have shifted production capacity toward advanced chips used in AI data centers, squeezing the supply of conventional memory chips used in smartphones and driving up prices. This has hit Xiaomi especially hard since over half its phones sell for under $200, making it more sensitive to rising component costs than other top-five brands. _Developers weighing hardware and component trends can follow chip supply news on daily.dev._ ## Similar posts on daily.dev - [The smartphone market is in big trouble](https://daily.dev/posts/the-smartphone-market-is-in-big-trouble-1woimtqrp) · TechCentral · 0 upvotes · 0 comments - [AI-driven memory crunch jolts India’s smartphone market](https://daily.dev/posts/ai-driven-memory-crunch-jolts-india-s-smartphone-market-ysrywy6fs) · TechCrunch · 0 upvotes · 0 comments - [Samsung sees no respite as memory shortage set to worsen](https://daily.dev/posts/samsung-sees-no-respite-as-memory-shortage-set-to-worsen-cor036clw) · TechCentral · 0 upvotes · 0 comments - [Apple’s stock slides on supply snags despite record iPhone sales](https://daily.dev/posts/apple-s-stock-slides-on-supply-snags-despite-record-iphone-sales-sdiygnbcq) · The Next Web · 0 upvotes · 0 comments --- Tags: [#tech-news](https://daily.dev/tags/tech-news), [#supply-chain](https://daily.dev/tags/supply-chain) [View this post on daily.dev](https://daily.dev/posts/xiaomi-s-profit-drops-again-as-the-memory-crunch-squeezes-its-phones-f6whyouwq) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Xiaomi’s profit drops again as the memory crunch squeezes its phones","url":"https://daily.dev/posts/xiaomi-s-profit-drops-again-as-the-memory-crunch-squeezes-its-phones-f6whyouwq","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/xiaomi-s-profit-drops-again-as-the-memory-crunch-squeezes-its-phones-f6whyouwq"},"datePublished":"2026-08-19T12:14:28.474Z","dateModified":"2026-08-19T12:18:20.077Z","description":"Xiaomi reported its third straight quarterly profit decline, with adjusted net income down about 43% to 6.22bn yuan ($922mn) as a global memory chip shortage...","image":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/f94a01ec08c5b2aa8858de9994e5a190?_a=AQAEuop","thumbnailUrl":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/f94a01ec08c5b2aa8858de9994e5a190?_a=AQAEuop","isAccessibleForFree":true,"articleSection":"The Next Web","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"The Next Web","logo":"https://media.daily.dev/image/upload/t_logo,f_auto/v1/logos/tnw","url":"https://daily.dev/sources/tnw"},"commentCount":0,"discussionUrl":"https://daily.dev/posts/xiaomi-s-profit-drops-again-as-the-memory-crunch-squeezes-its-phones-f6whyouwq","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":0},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":0}],"keywords":"tech-news,supply-chain","timeRequired":"PT5M"} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"The Next Web","item":"https://daily.dev/sources/tnw"},{"@type":"ListItem","position":3,"name":"Xiaomi’s profit drops again as the memory crunch squeezes its phones"}]} {"@context":"https://schema.org","@type":"FAQPage","@id":"https://daily.dev/posts/xiaomi-s-profit-drops-again-as-the-memory-crunch-squeezes-its-phones-f6whyouwq#faq","mainEntity":[{"@type":"Question","name":"Why did Xiaomi's profit drop so much in its latest quarter","acceptedAnswer":{"@type":"Answer","text":"Xiaomi's adjusted net income fell about 43% to 6.22bn yuan ($922mn) mainly due to a global memory chip shortage that raised smartphone component costs, combined with intensified industry competition. 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