China’s Xiaomi claims new phone chip rivals Apple at a cheaper price

Xiaomi, a prominent Chinese smartphone company, is making waves in the industry with its latest developments. The company is set to challenge Apple’s dominance in the market with the introduction of its own advanced chip, the Xring O1.

The battle between Xiaomi and Apple is heating up, particularly in terms of pricing. Xiaomi’s newest flagship phone, the Xiaomi 15S Pro, comes in at a starting price of 5,499 yuan ($764), making it eligible for a state-subsidized discount and significantly cheaper than Apple’s latest models. In comparison, the iPhone 16 Pro starts at 7,999 yuan, while the iPhone Pro Max starts at 9,999 yuan, placing them above the 6,000 yuan threshold for the Chinese government discount.

Xiaomi’s CEO, Lei Jun, has touted the capabilities of the Xring O1 chip, claiming that it outperforms Apple’s A18 Pro chip on various technical metrics, including heat management during gaming. While these claims have not been independently verified by CNBC, Lei Jun emphasized that Xiaomi’s focus is on developing a competitive processor rather than directly challenging Apple’s position in the market.

The company has also announced ambitious plans for the future, including a significant investment of 200 billion yuan in research and development over the next five years, starting in 2026. Lei Jun revealed that Xiaomi has been working on developing its own chips since 2014 and has allocated at least 50 billion yuan ($6.9 billion) towards chip development over the next decade.

In addition to its advancements in chip technology, Xiaomi has also made strides in the electric vehicle market. Last spring, the company launched its first electric car, the SU7 sedan, at a price point lower than Tesla’s Model 3 at the time. Xiaomi is set to release its first SUV, the YU7, in July, featuring Qualcomm Snapdragon and Nvidia Thor chips, advanced driver assist capabilities, and an impressive driving range of 835 km.

Despite facing challenges, such as a decline in vehicle deliveries following a fatal crash involving one of its cars, Xiaomi continues to show strong performance. The company is scheduled to release its first-quarter results on May 27, following a year of record revenue and net profit in 2024. With nearly 42% of its revenue coming from overseas markets, Xiaomi’s shares have remained more than 50% higher year-to-date.

In conclusion, Xiaomi’s innovative developments in chip technology and electric vehicles, coupled with its competitive pricing strategies, position the company as a formidable contender in the tech industry. As Xiaomi continues to push boundaries and expand its offerings, it will be interesting to see how the company’s growth trajectory unfolds in the coming years.