Xiaomi Challenges Apple with Powerful New Chip and Affordable Flagship Phone

Xiaomi unveils the 15S Pro smartphone powered by its in-house Xring O1 chip, claiming it outperforms Apple’s A18 Pro—all at a significantly lower price. Learn how Xiaomi is positioning itself as a global tech rival.

Xiaomi Takes Aim at Apple with New 15S Pro and Advanced Chip Technology

BEIJING — Chinese tech giant Xiaomi is taking bold steps to compete with Apple in the high-end smartphone market. At a launch event on Thursday, Xiaomi unveiled its new 15S Pro smartphone, priced at 5,499 yuan ($764)—well below the starting price of Apple’s iPhone 16 Pro at 7,999 yuan and iPhone 16 Pro Max at 9,999 yuan.

The competitive pricing makes the Xiaomi 15S Pro eligible for a Chinese government consumer subsidy, unlike Apple’s latest models, which exceed the 6,000 yuan threshold.

Introducing the Xring O1 Chip – Xiaomi’s Answer to Apple’s A18 Pro

Xiaomi’s CEO Lei Jun made headlines with the introduction of the company’s Xring O1 chip, claiming it beats Apple’s A18 Pro in several performance benchmarks, such as thermal efficiency during gaming. While these claims have not been independently verified, Lei emphasized that the chip symbolizes Xiaomi’s technological progress rather than an aggressive challenge to Apple.

“Apple is still number one,” Lei said in Mandarin, adding that the Xring O1 shows Xiaomi’s commitment to innovation.

A Long-Term Investment in R&D and Chip Development

Lei announced that Xiaomi will invest 200 billion yuan ($28 billion) in R&D over the next five years, starting in 2026. The company also plans to spend at least 50 billion yuan ($6.9 billion) over the next decade on in-house chip development, marking a major strategic shift.

Xiaomi previously began developing its own chips in 2014, unveiled one in 2017, and then paused the initiative. The Xring O1 represents a return to form after four years and 13.5 billion yuan ($1.87 billion) in development.

Currently, about 40% of Xiaomi phones still use chips from Qualcomm and MediaTek, according to Counterpoint Research.

Beyond Phones: Xiaomi Accelerates in the Electric Vehicle Market

Xiaomi’s ambitions extend beyond smartphones. The company’s SU7 electric sedan, launched in spring 2024, was priced $4,000 below Tesla’s Model 3 at the time. Now, Lei has announced Xiaomi’s first SUV, the YU7, set for official release in July 2025.

The YU7 will feature Snapdragon and Nvidia Thor chips, and its standard edition will offer advanced driver assistance with a driving range of 835 km. Though pricing was not revealed, promotional images and key specifications were shared during the event.

Despite a fatal SU7 crash in April that led to government-mandated restrictions on driver-assist marketing language, Xiaomi still delivered over 28,000 vehicles in April, only slightly down from 29,000 in March.

Strong Financials and Global Outlook

Xiaomi is expected to report its Q1 2025 results on May 27, following a record year in 2024 with all-time-high revenue and net profits. International markets contributed nearly 42% of total revenue last year.

Xiaomi’s stock price reflects investor confidence, remaining over 50% higher year-to-date.

Conclusion: Xiaomi's Aggressive Innovation Strategy Pays Off

From smartphones to electric vehicles, Xiaomi is positioning itself as a true tech powerhouse, using price, performance, and innovation to challenge global leaders like Apple and Tesla. With massive investment in chip development and R&D, Xiaomi is clearly playing a long game—one that could redefine China’s role in the global tech ecosystem.

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Source: CNBC