The company's revenue in the second quarter ended June 30 rose to 51.95 billion yuan ($7.36 billion) from 45.24 billion a year earlier. That was short of the 53.52 billion expected by analysts, Refinitiv data showed. Net income slumped 87% to 1.96 billion yuan. Still, adjusted profit of 3.64 billion yuan beat the 2.74 billion expected by analysts. Xiaomi said total smartphone shipments in the second quarter rose to 32 million.
The company, which listed last year, gets the majority of its revenue from mobile handsets, but also makes money selling online ads and other consumer devices. Huawei has received a lot of support from Chinese customers who are buying the company's phones after it was blacklisted by the United States, limiting access to US components and technology. Xiaomi's internet services unit, which makes money primarily by placing ads across various apps, accounted for 8.8% of its revenue, flat from one year prior. When Xiaomi listed in July 2018, executives touted the business unit as key to the company's continued growth.