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Xiaomi's Q2 earnings report is out, and overall it can be summarized as: Cars are saving growth, while phones are still holding it back! Xiaomi's total revenue for Q2 was ¥108.9 billion, down 6.1% year-over-year; adjusted net profit was ¥6.2 billion, down 42.6% year-over-year, indicating significant pressure on the group's overall performance. The biggest drag comes from the smartphone business. Q2 smartphone revenue was ¥42.1 billion, down 7.5% year-over-year, with shipments of 31.2 million units, down about 26% year-over-year. However, one point worth noting: shipments fell 26%, but revenue only dropped 7.5%, mainly because the smartphone ASP increased by 25.9% year-over-year. This shows Xiaomi is actively reducing low-priced models and pushing its product mix towards mid-to-high-end. Simply put, it’s a "volume for price" strategy; premiumization is indeed advancing, but in the short term, rising costs of components like storage are putting pressure on profits. Cars have become a very clear second growth curve for Xiaomi. Q2 revenue from smart electric vehicles and AI-related innovative businesses was ¥24.9 billion, up 17.1% year-over-year, with car revenue around ¥23.9 billion and quarterly deliveries of 104,200 units, up 28.2% year-over-year. What’s even more noteworthy is that cars, AI, and other innovative businesses now contribute nearly 23% of Xiaomi’s revenue. In other words, Xiaomi is gradually moving away from its past growth model solely reliant on "phones + IoT + internet services". #财报观察员：小米Q2财报出炉，是汽车救场还是手机拖后腿？