Xiaomi Profit Drops 43% as Memory Costs and EV Transition Weigh on Growth

Xiaomi Corp.’s adjusted net profit fell 43.1% in the first quarter, missing analysts’ expectations as surging memory-chip costs, weaker smartphone shipments and slower electric-vehicle deliveries weighed on the Hong Kong-listed company.

The results underscore mounting pressure on Xiaomi’s two key growth engines —smartphones and electric vehicles — as it navigates a sharp increase in component costs and a transition in its auto lineup while pushing further into premium devices and AI services.