BEIJING, Aug 18 (Reuters) - China's Xiaomi Corp posted a fall of 42.6% in second-quarter net profit on Tuesday, missing ****** ysts' estimates, as higher costs of memory and other components squeezed margins for the maker of smartphones and electric vehicles.
Adjusted net profit of 6.2 billion yuan ($919.50 million)for the period from April to June, fell short of an average ****** yst estimate of 6.6 billion yuan, according to LSEG data.
"Significant increases in key component costs, including memory, along with intensified industry competition, continued to create headwinds for our business," Xiaomi said in its earnings statement.
Second-quarter revenue came in at 108.9 billion yuan, it added, missing the average estimate of 112.2 billion.
Xiaomi's smartphone revenue fell 7.5% year-on-year to 42.1 billion yuan, while its smartphone gross margin declined to 8.5% from 11.5% a year earlier, clipped by higher prices for key components.
#costs
Adjusted net profit of 6.2 billion yuan ($919.50 million)for the period from April to June, fell short of an average ****** yst estimate of 6.6 billion yuan, according to LSEG data.
"Significant increases in key component costs, including memory, along with intensified industry competition, continued to create headwinds for our business," Xiaomi said in its earnings statement.
Second-quarter revenue came in at 108.9 billion yuan, it added, missing the average estimate of 112.2 billion.
Xiaomi's smartphone revenue fell 7.5% year-on-year to 42.1 billion yuan, while its smartphone gross margin declined to 8.5% from 11.5% a year earlier, clipped by higher prices for key components.
#costs
2 months ago
