Xiaomi, a Beijing-based consumer electronics maker, reported first-quarter 2026 net income fell 56.5% to 4.7 billion yuan ($695 million).

Its revenue declined 11% to 99.1 billion yuan (US$14.6 billion) as higher memory costs weighed on its smartphone business.

In its earnings summary, Xiaomi said its smartphone and AIoT segment recorded 79.3 billion yuan (US$11.7 billion) in revenue.

Its smart electric vehicle, AI, and new initiatives segment posted 19.9 billion yuan (US$2.93 billion) in revenue and an operating loss of 3.1 billion yuan (US$457 million).

International Data Corporation said Xiaomi’s smartphone shipments fell 19.2% year on year in the quarter, even as its average selling price hit a record 1,310 yuan (US$190).

IDC warned the memory shortage would raise component costs and weigh more heavily on low- to mid-range Android devices.

Xiaomi also said on Tuesday it would repurchase up to HK$20 billion (US$2.55 billion) of stock over the next 12 months.

In autos, margins face pressure from fierce competition and reduced incentives. Xiaomi said it does not expect its 2026 automotive gross margin to exceed 2025 levels.

🔗 Source: Xiaomi

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