Learn about the expectations for the Chinese brand Xiaomi. See what the CEO said about Apple.
Xiaomi founder and chairman Lei Jun said on Monday that Apple's iPhone remains the benchmark in the high-end segment of the global mobile phone market, undermining the Chinese technology company's initial goal of becoming the world's largest smartphone seller by the end of next year.
Lei referenced Apple's flagship devices several times during his annual keynote address at the China National Convention Center in Beijing, where Xiaomi unveiled its latest products. Read on to find out more.
An audience of about 3,500 applauded Lei, 53. The CEO has a net worth of $10.2 billion as of Aug. 15, according to Forbes. Jun was sharing a personal story and reaffirming Xiaomi's promise to compete with Apple in the hour-long meeting.
Aggressive competition
In addition to taking aim at Apple, Jun’s rhetoric reflects the company’s attempt to compete more aggressively with Asian rivals in the world’s largest domestic smartphone market. China shipped 65.7 million devices in the quarter ended June 30, down 2.11 trillion yen. That’s still a positive figure compared to a 14.81 trillion yen drop in the same period last year, but the market is dominated by low-cost smartphones from Huawei, Oppo and Vivo. Brands such as Honor and Apple also sold well in China, according to research firm IDC.
Meanwhile, Beijing-based Xiaomi tied for fifth place with Huawei, which rebounded last quarter.
However, according to a report by Counterpoint Research, Xiaomi ranked third in global smartphone sales in the second quarter, behind Samsung and Apple. However, the report pointed out that Xiaomi faced problems in its two largest markets, China and India, during the same period.
New Xiaomi release
Lei, often dubbed the “Chinese Steve Jobs” by local media, on Monday compared Xiaomi’s latest foldable smartphone, the Mix Fold 3, to Apple’s flagship, the iPhone 14 Pro Max. However, the CEO avoided commenting on Xiaomi's ambitious goal of becoming the world's largest smartphone seller. The target was first revealed in August 2021, after Xiaomi overtook Apple to become second behind Samsung in smartphone shipments in the second quarter of that year.
The executive tried to portray Xiaomi as Apple's main competitor, but the Chinese company's total market value on Tuesday (15) was around 189 billion reais, which does not compare to Apple's market value of more than 14 trillion reais.
In his speech, Lei said that Xiaomi launched two initial premium models, the Xiaomi 10 and Xiaomi 11. However, they did not live up to market expectations. But that could change. The new prices of the Mix Fold 3 Xiaomi's foldable smartphone starts at 8,999 yuan (US$1,240). The phone is powered by Qualcomm's second-generation Snapdragon processor and features an optical system developed with German camera maker Leica. The company's latest foldable smartphone sold out in three minutes when pre-orders opened at the end of the event on Monday.
