AssetID: 55728446
Headline: UNCAPTIONED: Xiaomi Profit Plunges 43% as Chip Costs Hammer Smartphone Business
Caption: Xiaomi Profit Plunges 43% as Chip Costs Hammer Smartphone Business. Chinese tech company Xiaomi reported a 43 percent drop in first-quarter profit as rising memory chip prices hit its smartphone business hard. The company posted adjusted net profit of 6.1 billion yuan, missing analyst forecasts and confirming deeper pressure across the electronics industry. Xiaomi’s smartphone shipments fell 19 percent from a year earlier, making it the weakest performer among the world’s top five phone brands. The company blamed much of the pressure on a global memory chip shortage driven by growing demand for artificial intelligence infrastructure. At the same time, Xiaomi continued investing heavily in electric vehicles, with this particular division posting major operating losses. The company recently launched a lower-cost version of its YU7 electric SUV to compete more aggressively with Tesla in China’s crowded EV market. Executives warned that chip shortages and global uncertainty could continue hurting consumer demand and profits through 2027. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Current Affairs & Politics,Xiaomi,losses,plunge,electric vehicles,smartphones,business,hit,profit,chips,semiconductors,paralysis,global shipping,production costs,YU7,Tesla,China,overcrowded,market,tech company,electronics sector
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