Xiaomi Corp. reported a 6.1% year-over-year decline in second-quarter revenue to 108.9 billion yuan ($16.2 billion). Net profit fell 20.5% to 9.46 billion yuan ($1.4 billion). These results surpassed analyst consensus estimates, which had projected a steeper profit decline.
The company cited a global memory chip shortage and weak smartphone demand for the downturn. Smartphone revenue decreased by 7.5% as component costs rose.
Xiaomi's electric vehicle division grew 16% during the quarter. This expansion followed an increase in total vehicle deliveries.