Xiaomi profit drops 27% on weaker smartphone sales as Chinese firm’s EV growth slows

A man takes a picture of a Xiaomi phone at the Mobile World Congress in Barcelona, Spain, on March 2, 2026.

Photo: Reuters Xiaomi, the Chinese smartphone and electric vehicle (EV) maker, reported that fourth-quarter net profit dropped 27 per cent from a year earlier, as weaker sales cut into margins.

Profit fell to 6.5 billion yuan (US$943 million), a 47 per cent plunge from the previous quarter and the lowest quarterly number in a year.

It was also the first quarter-on-quarter decline since the second quarter of 2024.

Fourth-quarter revenue rose 7.3 per cent from a year earlier and 3 per cent compared with the previous quarter to 116.9 billion yuan.

The results met analyst estimates of 5.78 billion yuan in profit and 116 billion yuan in sales.

For the full year, Xiaomi recorded 457 billion yuan in revenue and 41.57 billion yuan in net profit, up 25 per cent and 76.3 per cent, respectively, from 2024.

The results came as Xiaomi’s largest revenue contributors suffered softening demand.

In the fourth quarter, sales volume of smartphones dropped 11.6 per cent year on year to 37.7 million units, dragging income for the segment down 13.6 per cent to 44.3 billion yuan.

Average selling prices sank 2.2 per cent to 1,176 yuan from 1,202 yuan a year ago despite the firm’s shift to premium models.

Revenue from EVs and other new initiatives – Xiaomi’s second-largest income source since the third quarter of last year – surged 123.4 per cent year on year to 37.2 billion yuan.

However, Xiaomi’s EV delivery growth cooled significantly in late 2025, dropping from a 300 per cent peak in April to double digits by December.

The slowdown followed a naturally high initial growth phase and was further compounded by fatal accidents involving its models that damaged consumer confidence.

Xiaomi’s Hong Kong-listed shares gained 1.9 per cent in Hong Kong to HK$32.68 on Tuesday.

The stock has lost nearly 19 per cent this year and is down 46.8 per cent from its all-time high of HK$61.45 in June 2025.

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原文链接: 南华早报