Story perspectives

Xiaomi Q2 Profit Falls 42.6%, Misses Forecast

8/19/2026

Summary

Story summary

Xiaomi reported Q2 2026 profit of 6.22 billion yuan, down 42.6% and missing the 6.6 billion yuan forecast.
Smartphone revenue fell 7.5% to 42.1 billion yuan, with shipments down 26.5% at 31.2 million units.
Average selling price rose 26% to 1,351 yuan, while gross margin fell to 8.5% from 11.5%.
The company increased R&D spending 25.6% to 18.2 billion yuan and repurchased 79.8 million shares for 100.7 million Hong Kong dollars as shares fell 4.9% to 2.73 euros.

History

Historical Context

After the Shanghai Stock Exchange plunged roughly 30% in June 2015, prompting China Construction Bank to inject about ¥1.5 trillion into equities, Chinese firms like Xiaomi saw revenue dip 12% that year. The same market volatility resurfaced in 2026, when Xiaomi’s Q2 profit fell 42.6% and shipments dropped 26.5%, leading the company to launch HK$100.7 million of share buybacks.

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Story summary

Xiaomi reported Q2 2026 profit of 6.22 billion yuan, down 42.6% and missing the 6.6 billion yuan forecast.
Smartphone revenue fell 7.5% to 42.1 billion yuan, with shipments down 26.5% at 31.2 million units.
Average selling price rose 26% to 1,351 yuan, while gross margin fell to 8.5% from 11.5%.
The company increased R&D spending 25.6% to 18.2 billion yuan and repurchased 79.8 million shares for 100.7 million Hong Kong dollars as shares fell 4.9% to 2.73 euros.

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