Xiaomi reported a slump in quarterly net profit, caught between soaring memory-chip prices and subdued consumption in China. The Chinese electronics giant faces mounting headwinds across its business segments, with shares under pressure over the past six months as investors worry about the challenging operating environment.

Sales from the company's smartphone business, its biggest revenue driver, fell 14% during the quarter. However, Xiaomi's EV division showed resilience with quarterly revenue more than doubling to 36.3 billion yuan, driven by higher vehicle deliveries and increased selling prices in the competitive electric vehicle market.

The earnings results highlight the difficult balancing act Xiaomi faces as component costs rise while consumer demand remains uncertain. The company's performance reflects broader challenges in the Chinese consumer electronics sector, where manufacturers must navigate supply chain constraints and shifting market preferences simultaneously.