Xiaomi Aims to Rival Apple with New Phone Chip and Ambitious Tech Investments
Xiaomi is stepping up its game, directly challenging Apple with its new in-house developed phone chip, the Xring O1, and promising significant investments in core technology research. This move signals a bold ambition to compete at the highest levels of the tech industry.
At a recent launch event in Beijing, Xiaomi CEO Lei Jun unveiled the Xring O1, claiming it outperforms Apple's A18 Pro in several key technical areas, including heat management during gaming. While CNBC has not independently verified these claims, Lei emphasized Xiaomi's dedication to creating a comparable processor. "Apple is still number one," Lei acknowledged, framing the Xring O1’s performance as a testament to Xiaomi's efforts rather than an attempt to overshadow Apple.
This announcement arrived alongside the launch of Xiaomi's new tablet, the Pad 7 Ultra, officially launched with the new Xring O1 SoC and a stunning 14-inch OLED display, directly aiming to rival the Samsung Galaxy Tab S10 Ultra. The Pad 7 Ultra boasts a 50 MP rear camera utilizing Samsung's ISOCELL JN1 sensor, a sizable 12,000 mAh battery with 120 W wired charging, and is remarkably thin at just 5.1 mm. It starts at CNY 5,699 (~$791) with 12 GB of RAM and 256 GB of storage, going up to CNY 7,399 (~$1,027) for 16 GB of RAM and 1 TB of storage.
Beyond the chip and tablet, Lei Jun declared that Xiaomi will invest 200 billion yuan (approximately $27.8 billion) in core technology research and development over the next five years, starting from 2026. This investment underscores Xiaomi's commitment to long-term innovation and technological independence.
Xiaomi is also making strides in the electric vehicle market. Following the launch of their first electric car, the SU7 sedan, Xiaomi is preparing to release its first SUV, the YU7, in July. Lei hinted at the YU7’s features, including Qualcomm Snapdragon and Nvidia Thor chips, as well as advanced driver-assist systems. However, Xiaomi had a recent setback when an SU7 vehicle crash resulted in fatalities, leading to stricter regulations on advertising driver-assist systems in China.
These moves come as Xiaomi gears up to release its first-quarter results on May 27, following a record year of revenue and net profit in 2024. Could Xiaomi’s push for self-reliance in chip development, combined with its ambitious expansion into electric vehicles, allow them to gain significant ground against established tech giants like Apple? What is your opinion? Share your thoughts in the comments below!
