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

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

May 22, 2025No Comments4 Mins Read
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China’s Xiaomi claims new phone chip rivals Apple at a cheaper price
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Chinese language smartphone firm Xiaomi is creating its personal chip known as Xring O1.

Cfoto | Future Publishing | Getty Photographs

BEIJING — Chinese language smartphone firm Xiaomi is taking over Apple’s iPhone with a complicated chip and a less expensive telephone.

Xiaomi is successful the battle on the pricing of its newest telephone. The brand new Xiaomi 15S Professional begins at 5,499 yuan ($764) — making it eligible for a state-subsidized low cost — and is considerably cheaper than Apple fashions containing the corporate’s most superior telephone chip. The iPhone 16 Professional begins at 7,999 yuan, whereas the iPhone Professional Max mannequin begins at 9,999 yuan — above the 6,000 yuan cut-off for a Chinese language authorities low cost for shoppers.

And Xiaomi CEO Lei Jun claims his firm additionally has a aggressive chip, saying at a launch occasion on Thursday that Xiaomi’s new Xring O1 beat Apple’s A18 Professional on a number of technical metrics, together with the flexibility to function a sport with much less warmth.

CNBC has not independently verified these claims. CNBC has reached out to Apple for remark.

“Apple remains to be primary,” Lei mentioned in Mandarin, in line with a CNBC translation. He mentioned the Xring O1’s efficiency shouldn’t be seen as an try to stress Apple, however relatively as an indicator of the good effort Xiaomi made to develop a comparable processor.

The U.S. has more and more restricted China’s means to entry high-end tools for creating superior semiconductors utilized in coaching synthetic intelligence fashions.

Lei didn’t talk about any vital AI options for the 15S Professional, however confirmed the way it could possibly be used to lock and unlock a appropriate automotive.

He introduced that Xiaomi will spend 200 billion yuan on analysis and growth within the subsequent 5 years, ranging from 2026, and predicted 30% income development this 12 months.

Lei had teased the three nanometer chip final week on Chinese language social media app Weibo. He later famous the chip is in mass manufacturing and mentioned the corporate would make investments at the least 50 billion yuan ($6.9 billion) over the following 10 years in its personal chip growth.

Apple’s iPhone 16 Professional and Professional Max use A18 Professional chips constructed on the identical 3 nanometer course of.
Round 40% of Xiaomi’s telephones at the moment use chips by Qualcomm and MediaTek, in line with Counterpoint Analysis Companion Niel Shah.

Xiaomi spent 13.5 billion ($1.87 billion) over 4 years to develop the Xring O1, Lei mentioned in a social media publish. He revealed that the corporate began creating chips in 2014 and unveiled one in 2017, earlier than briefly suspending such analysis.

Final spring, Xiaomi launched its first electrical automotive, the SU7 sedan, with a worth $4,000 under that of Tesla’s Mannequin 3 on the time. Ford CEO Jim Farley mentioned he spent months driving a Xiaomi electrical automotive, as he tried to evaluate competitors from Chinese language automakers.

Xiaomi’s first SUV, known as the YU7, might be formally launched in July, Lei mentioned in a social media publish, noting the automotive’s worth would not be revealed Thursday. Lei did share some promotional pictures and automotive options on the occasion.

The corporate delivered greater than 28,000 autos in April, down from its file of greater than 29,000 throughout the earlier month. That comes after the crash of an SU7 car in China, which left three folks lifeless. China has since required automakers to make use of extra conservative language when promoting driver-assist methods.

Xiaomi is ready to launch its first-quarter outcomes on Might 27, after the corporate in March reported file income and internet revenue for 2024. Gross sales generated from abroad markets final 12 months accounted for practically 42% of complete income.

The corporate’s shares stay greater than 50% increased year-to-date.

— CNBC’s Arjun Kharpal and Bernice Ooi contributed to this report.

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