“The prices of memory are still high and the competition remains fierce. But the short-term pressure will not change our strategy for the long run,” said Lu Weibing, partner and president of Xiaomi, during the call.
Chinese technology giant Xiaomi’s profits declined for the third consecutive quarter, even as the company claimed that it is in “no rush” to convert its large-scale investments in artificial intelligence (AI) into profits.
Xiaomi has been amongst the biggest casualties of shortage in global supplies of memory chips as chip manufacturers prioritize advanced memory chips to be used in datacentres for artificial intelligence (AI) work.
“The prices of memory are still high and the competition remains fierce. But the short-term pressure will not change our strategy for the long run,” said Lu Weibing, partner and president of Xiaomi, during the call.
In the first half of the year Xiaomi’s R&D spending jumped 25.6 percent on a year-on-year basis, with AI related inputs accounting for 30 percent of the total, according to the company.
On Tuesday, the Beijing-based smartphone and electric vehicle maker, said that the revenue for the April to June Period has fallen by 6.1 percent to 108.9 billion yuan ($16.15 billion). However, the figure beats analysts’ projection of 108.3 billion yuan in revenue.
Smartphones, Xiaomi’s largest revenue contributor, saw second quarter revenue fall by 7.5 percent year-on-year. Home appliances and IoT products also declined by 19.2 percent.
