Xiaomi is winning the battle on pricing with its latest phone, the Xiaomi 15S Pro, which starts at 5,499 yuan ($764) and qualifies for a state-subsidised discount. Apple models with the company's most advanced phone chip start at 7,999 yuan, while the iPhone Pro Max model starts at 9,999 yuan, which is more than the 6,000 yuan threshold for a Chinese government discount for customers.
Additionally, Xiaomi CEO Lei Jun asserts that his business has a competitive processor, stating during a Thursday launch event that Xiaomi's new Xring O1 outperformed Apple's A18 Pro on a number of technical metrics, such as the capacity to run a game with less heat.
These statements have not been independently confirmed by CNBC. Apple has been contacted by CNBC for comment.
According to a CNBC translation, Lei stated in Mandarin, "Apple is still number one." According to him, the Xring O1's performance is a testament to Xiaomi's tremendous work in creating a processor that is competitive, not an attempt to put pressure on Apple.
China's access to high-end machinery for creating cutting-edge semiconductors used in artificial intelligence model training has been progressively restricted by the United States.
Lei demonstrated how to lock and unlock a compatible vehicle but did not go over any noteworthy AI features for the 15S Pro.
In addition to predicting a 30% increase in revenue this year, he declared that Xiaomi would invest 200 billion yuan in research and development over the next five years, beginning in 2026.
On the Chinese social media platform Weibo, Lei had hinted about the 3-nanometre technology last week. The chip is now in mass production, he added, and the company plans to invest at least 50 billion yuan ($6.9 billion) on its own chip research over the next ten years.
The A18 Pro chips used in Apple's iPhone 16 Pro and Pro Max are constructed using the same 3-nanometre technology.
According to Counterpoint Research Partner Niel Shah, Qualcomm and MediaTek chips are currently used in about 40% of Xiaomi's phones.
According to a social media post by Lei, Xiaomi invested $13.5 billion ($1.87 billion) over four years to produce the Xring O1. According to him, the business began creating chips in 2014 and debuted one in 2017 before putting the project on hold for a while.
The SU7 sedan, Xiaomi's first electric vehicle, was released last spring and cost $4,000 less than the then-current Model 3 from Tesla. Jim Farley, the CEO of Ford, claimed that in an attempt to gauge competition from Chinese automakers, he drove a Xiaomi electric car for months.
In a social media post, Lei stated that Xiaomi's first SUV, the YU7, will formally launch in July. The car's price will not be disclosed on Thursday. During the occasion, Lei did reveal some promotional photos and details about the car.
Nvidia Thor and Qualcomm Snapdragon chips would be used in the YU7 automobile, according to Lei. Advanced driver assistance and an 835-kilometre driving range are features of the base model.
In April, the firm delivered over 28,000 vehicles, which was less than the previous month's record of over 29,000 vehicles. That follows the SU7 vehicle crash in China that claimed three lives. Since then, China has mandated that automakers advertise driver-assist technologies using more conservative language.
After reporting record sales and net profit for 2024 in March, Xiaomi is scheduled to reveal its first-quarter results on May 27. Last year, sales from foreign markets made up almost 42% of total revenue.
The company's stock has increased by almost 50% so far this year.
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