Xiaomi Q1 Profit Drops 43 Percent on Higher Chip Costs
Xiaomi reported a 43 percent drop in first-quarter profit as high chip costs pressured its smartphone business. The firm continues to invest in its EV unit.
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XIAOMI CORP-CLASS B posted a 43% drop in first-quarter adjusted net profit to 6.1 billion yuan ($899 million) on Tuesday. The result missed the 6.4 billion yuan average estimate recorded in LSEG data as memory chip costs rose. Investors are weighing the cost of Xiaomi's aggressive electric vehicle expansion against its shrinking core smartphone margins in China.
