Xiaomi's "Leapfrog"

"It's never too late to change." In this year's speech, Lei Jun used this sentence to summarize the company's five - year transformation journey.

From being deeply questioned about "lacking core technologies" in 2020 to now competing in the Nürburgring circuit with its self - developed Xuanjie O1 chip and cars, Xiaomi is trying to completely shed the label of an "assembly factory" and transform into a technology enterprise.

In 2020, although Xiaomi had made it onto the Fortune Global 500 list and its annual revenue had exceeded 200 billion yuan, Lei Jun admitted that he was full of anxiety at that time: the industry competition was fierce, the team was exhausted, and there were continuous external doubts. After a six - month in - depth review, Xiaomi decided to transform into a technology company and launched two high - investment businesses: car manufacturing and chip manufacturing. Lei Jun described this decision as "sending two children to college at the same time" and even staked the company's accumulations from the previous decade.

Five years of in - depth efforts have finally paid off. After the Xuanjie chip was installed in the Xiaomi 15S Pro and launched on the market, Xiaomi's high - end series of mobile phones continued to reach new heights. According to Canalys data, in the first quarter of 2025, Honor dropped out of the top five in the global high - end mobile phone shipments, and Xiaomi, with an 81% growth rate, squeezed into the top five for the first time.

However, Xiaomi's ambition doesn't stop there. It is trying to take a further step in its high - end strategy - to replace Apple and take the center position at the gaming table.

Five days after the release of the iPhone 17, Lei Jun publicly declared war, saying, "The Xiaomi 17 will fully compete with the iPhone." Lu Weibing, the president of Xiaomi, also emphasized that from benchmarking and learning five years ago to direct competition today, Xiaomi has the courage to directly compete with Apple.

At this autumn press conference, Xiaomi launched multiple new products such as mobile phones, tablets, and home appliances all at once. Among them, the digital flagship mobile phone was called "the biggest strategic change in Xiaomi's history" by Lei Jun.

The innovative back screen of the Xiaomi 17 Pro is the biggest highlight of this product. You can use the front of the phone for normal use and play games on the back. The back screen supports multiple functions such as personalized wallpapers, AI wallpapers, dynamic notifications, sticky notes, and sticker modes. The back screen of the phone is no longer a monotonous decoration but a truly practical interactive interface.

In terms of battery life, it is also a key area for Xiaomi's technological breakthrough. The standard - version Xiaomi 17 is equipped with a 7000mAh Xiaomi Jinshajiang battery, using a 16% silicon content technology, which maximizes the battery life. Moreover, in terms of price, Xiaomi continues its brand's consistent cost - effectiveness advantage. With a starting price of 4499 yuan, while considering the price, it can also drive Xiaomi's mobile phones to continuously break through into the high - end market.

Whether it is the innovation of the back screen or the breakthrough in battery life, behind these technological breakthroughs is Xiaomi's investment of over 100 billion yuan in R & D in the past five years and the accumulation of systematic innovation capabilities. These substantial investments have become Lei Jun's confidence to squeeze out Cook from the center position.

A

At the autumn press conference in 2025, the Xiaomi 17 series for the first time precisely aligned with the Apple iPhone 17 series with a "standard version, Pro, Pro Max" three - cup matrix. From learning to benchmarking, Xiaomi believes that its systematic innovation ability has reached a stage where it can compete with Apple on an equal footing.

As early as 15 days ago, Apple also launched the iPhone 17 series, which is said to have the largest update in the past five years. All new models are standard - equipped with a 120Hz high - refresh - rate screen, significantly increasing the memory capacity and battery life. It also introduced a VC heat - dissipation system and focused on optimizing the signal connection ability. In terms of performance, the entire iPhone 17 series is equipped with the A19 chip, and Apple also showcased its self - developed C1X and N1 co - processors for the first time.

The performance of the iPhone 17 series is regarded as the most comprehensive feature upgrade in Apple's history. Apple, which has finally made significant improvements, is also considered by the outside world to have made a key turn in its competition strategy. Its core purpose is not to catch up or imitate but to systematically plug its own weaknesses.

In the past few years, Apple has often been criticized for lacking innovation and tends to adopt and optimize technologies that have proven popular in the market. For example, the high - refresh feature, which is now standard, was already a standard configuration for Android flagships five years ago. This conforms to Cook's strategy of "not being the first but being the best and most stable."

However, while Android manufacturers take the lead in trial - and - error, allowing Apple to reduce risks, it has also been labeled "lacking in innovation" by the outside world.

On the day of Apple's press conference, Lu Weibing, the president of Xiaomi and Apple's competitor, generously praised the "very amazing design" on social media. Five days later, he turned around and issued a challenge to Apple. Lei Jun also said on social media that the Xiaomi 17 series is fully benchmarked against the iPhone and will compete head - on.

In the tone of the declaration of war, there is no fear of the competitor, only excitement.

In the second quarter of this year, in the highly competitive price range of 4000 - 5000 yuan, Xiaomi ranked first in the Chinese mainland market with a market share of 24.7%, a year - on - year increase of 4.5%. In the 5000 - 6000 yuan price range, its market share reached 15.4%, a significant year - on - year increase of 6.5%.

Looking at the history of mobile phones, the era of smartphones started with the screen revolution, and each screen revolution has brought further interactive innovation. In 2007, the first - generation iPhone revolutionized the physical keyboard with a multi - touch screen; in 2013, Samsung's curved screen initiated the exploration of form; in 2019, the folding screen tried to overtake on a new track.

However, except for the breakthrough innovation of the first - generation iPhone, Apple has remained on the sidelines in subsequent screen form innovations such as curved screens and folding screens. It is precisely Apple's "arrogance" in the innovation path that has given Xiaomi an opportunity to break through. By 2025, Xiaomi is leading in the Android phone market, making an innovative back screen and creating new gameplay in the interactive experience. In terms of interactive experience, Xiaomi is one step ahead of Apple.

In the past two years, the average price of Xiaomi mobile phones has risen from 997 yuan in Q3 of 2023 to 1211 yuan in Q1 of 2025, an increase of 12.2%; the sales volume of high - end models has increased to 35%. There has also been a breakthrough in the global high - end market, with Xiaomi ranking among the top three in smartphone shipments in 58 countries.

B

"High - end transformation is a battle of life and death for Xiaomi." At the launch event of the Xiaomi 17 series, Lei Jun reviewed the difficult exploration in the past five years. Since launching the high - end strategy in 2020, Xiaomi has cumulatively invested more than 100 billion yuan in R & D, and finally achieved a comprehensive breakthrough from chips, screens to imaging systems in the Xiaomi 17 series.

In the second quarter of this year, Xiaomi's single - quarter R & D investment reached a record high of 7.8 billion yuan, a year - on - year increase of 41.2%. The R & D investment is mainly focused on the three technological pillars of "chips, OS, and AI".

In order to make a breakthrough in chip technology, Xiaomi has also formulated a large - scale chip business and plans to "invest 50 billion yuan in ten years". As of April 2025, the cumulative R & D investment in Xuanjie has exceeded 13.5 billion yuan, and the R & D team has more than 2500 people.

The Xuanjie O1 installed in the Xiaomi 17 launched this time is Xiaomi's chip - making business restarted after the failure of its first - generation Pinecone chip. In May this year, Xiaomi successfully released its first 3nm flagship SoC, the "Xuanjie O1", and the watch chip "Xuanjie T1", becoming the first company in the Chinese mainland and the fourth in the world with the independent R & D and design capabilities for 3nm flagship SoCs, filling the gap in the field of 3nm advanced - process chip design in the Chinese mainland.

Lei Jun also revealed the pressure he endured in R & D investment. The decisions to build cars and restart chip - making were almost made at the same time, staking all of Xiaomi's accumulations from the previous decade. "To be honest, it's extremely stressful to send two children to college at the same time."

This pressure has gradually been transformed into results.

High - end products equipped with the Xuanjie O1, such as the Xiaomi 15S Pro, Xiaomi Pad 7 Ultra, and Xiaomi Pad 7S Pro, have also received a certain response in the market. Among them, the Xiaomi 15S Pro was quickly sold out on e - commerce platforms, and the market has voted with actions for Xiaomi's self - developed chips.

The latest report from market research firm CounterPoint Research shows that although Apple still has the highest market share, in the first half of 2025, Xiaomi's year - on - year growth rate in the high - end mobile phone market reached 55%, far higher than Apple's 3%.

In addition to the boost from chips, the Pengpai OS builds cross - device interconnection, and the AI large - model technology achieves breakthroughs in edge - side deployment. Both comprehensively empower the "whole ecosystem of cars, homes, and people" strategy. These breakthroughs in basic technologies have also laid the foundation for the innovation of Xiaomi's product series.

Taking the Xiaomi 17 Pro as an example, on the surface, the technological breakthroughs revolve around the back screen. In fact, behind the screen, Xiaomi has also made reconstructions in imaging and battery life.

Lu Weibing revealed that the R & D investment in the back screen exceeded 1 billion yuan. Separate design, screen - opening, and R & D were carried out just for this screen. To support the interactive experience of the back screen, Xiaomi's imaging system is equipped with a 200 - megapixel periscope telephoto lens. With the operation on the back - screen page, users can also take high - quality selfies.

To solve the power - consumption problem of the two screens, Xiaomi has also made innovations in battery life. The entire Xiaomi 17 series is equipped with a 7000mAh super - large battery, supporting 120W fast - charging technology, fundamentally solving the battery - life pain point of dual - screen standby.

From the perspective of the 18 - year history of mobile - phone innovation, Xiaomi's exploration of back - screen interaction this time is not only about a novel function but also challenges the long - stagnant status quo of smartphone interaction forms, seeking the next possibility for the industry.

C

In 2020, at the ten - year milestone, Xiaomi was in a profound strategic reflection. Facing the question of "where to go in the next decade", Lei Jun finally clarified the path: make large - scale investments in underlying core technologies and transform from an Internet company to a hardcore technology enterprise.

In the following five years, Xiaomi's R & D investment increased from 9.3 billion yuan in 2020 to 24.1 billion yuan in 2024, and it is expected to reach 30 billion yuan in 2025. The size of the R & D team has doubled from 10,000 to 22,600. This transformation has brought fundamental changes. As of the first half of 2025, Xiaomi has cumulatively invested more than 100 billion yuan in R & D and plans to invest another 200 billion yuan in the next five years.

Five years ago, Xiaomi established the iron rule of "technology as the foundation" and shifted its development path from an Internet company to a hardcore technology enterprise. This transformation has brought a comprehensive upgrade of the company's strategy. In 2023, Xiaomi announced an upgrade from the "mobile phone × AIoT" strategy to the "whole ecosystem of cars, homes, and people" strategy.

This transformation marks Xiaomi's leap from product thinking to scenario thinking. Previously, although the "mobile phone × AIoT" connected devices, it still centered around the mobile phone. The "whole ecosystem of cars, homes, and people" achieves seamless collaboration among more than 200 categories and over 1 billion devices through the Pengpai OS. This kind of interaction that breaks hardware boundaries allows technology to truly flow around people's needs.

To support this strategy, Xiaomi has made significant adjustments to its organizational structure. Among the 12 executive teams, only 3 are original members, and the other 9 are professional talents introduced from the automotive and chip fields. The new leadership team, including President Lu Weibing, brings a brand - new technological perspective.

It can be said that breaking through in the automotive field is also a key piece of the puzzle for Xiaomi in the high - end market. In March 2021, Lei Jun announced that Xiaomi Group would establish a wholly - owned subsidiary to be responsible for the intelligent electric vehicle business, with an initial investment of 10 billion yuan and an expected investment of 10 billion US dollars in the next ten years.

In fact, the Xiaomi SU7 Ultra was once cut during the project establishment, but the team restarted it after 21 consecutive days of meetings. Because high - end transformation is a battle of life and death for Xiaomi and a hurdle that Xiaomi must overcome. Eventually, the Xiaomi SU7 Ultra ranked first in the sales volume of sedans priced over 500,000 yuan this year. That is to say, for every three pure - electric cars sold in the luxury market above 500,000 yuan, one is a Xiaomi SU7 Ultra.

Lei Jun revealed that more than 50% of the users of the Xiaomi SU7 are from owners of luxury brands, and 56% of the Xiaomi SU7 owners are also Apple mobile - phone users. This shows that Xiaomi has broken through the "cost - effectiveness" label and established a brand image in the high - end market.

Xiaomi's innovation achievements are not only reflected in a single product but also in the ecological synergy effect.

In the first quarter of 2025, Xiaomi made car - making and chip - making parallel core strategies, staking the accumulations from the previous decade, which has spawned results such as the Xuanjie 3nm chip and Xiaomi cars.

The AIoT home - appliance business has also seen growth in the domestic market. In the second quarter of 2025, the revenue of Xiaomi's smart home appliances reached a record high, with a year - on - year increase