Xiaomi Shows Off a Strong Chip to compete with Apple and comes out with a New Phone and an Electric SUV at Reasonable Prices.
BEIJING — May 23, 2025 — Xiaomi, a big tech company in China, just launched its newest phone. The smartphone has an in-house chip that the company claims can outperform Apple’s best processor at a significantly lower price. This is a bold move that Xiaomi hopes will help it stay ahead in the global tech race.
During a high-profile launch event on Thursday, Xiaomi CEO Lei Jun unveiled the Xiaomi 15S Pro, a new flagship device equipped with the company’s newly developed Xring O1 chip. Priced at 5,499 yuan (\$764), the 15S Pro undercuts Apple’s iPhone 16 Pro, which starts at 7,999 yuan, by a significant margin, placing it within reach of Chinese government subsidies available to devices priced below 6,000 yuan.
Lei says that the Xring O1 chip is faster than Apple’s A18 Pro chip in several speed tests, especially when it comes to gaming and keeping the heat down.“This is not about defeating Apple,” Lei said during the event. “It’s about proving what Xiaomi can achieve through relentless innovation.”
While these claims remain unverified by third parties, they underscore Xiaomi’s increasing investment in semiconductor technology. The Xring O1 is a 3-nanometer chip, a leap forward in terms of processing power and energy efficiency. Xiaomi is said to have spent 13.5 billion yuan ($1.87 billion) on its development over four years. A lot of them are now being made.
The company Xiaomi wants to do more than just make phones. The company also gave a sneak peek at its upcoming electric SUV, the YU7, which will be officially launched in July 2025. Though pricing details were withheld, Lei shared images and specs at the event, confirming the vehicle will be powered by Qualcomm Snapdragon and Nvidia Thor chips. The SUV is expected to feature a robust driving range of 835 kilometers and advanced driver assistance systems as standard.
The announcement follows the success of Xiaomi’s SU7 sedan, which launched last spring at a price roughly $4,000 less than Tesla’s Model 3. Since then, Xiaomi has delivered over 28,000 vehicles in April alone, which is a slight decrease from its record of 29,000 vehicles delivered in March. The drop comes in the wake of a tragic SU7 accident that resulted in three fatalities, prompting tighter government regulation on marketing language for driver-assist technologies.
Xiaomi is indicating that its plan for tech development is to grow quickly. Lei announced a planned investment of 200 billion yuan in research and development over the next five years, beginning in 2026. The company also aims to spend at least 50 billion yuan (\$6.9 billion) over the next decade, specifically on chip development.
Despite its chip breakthrough, Xiaomi still relies heavily on third-party processors. According to Counterpoint Research, about 40% of its current smartphone lineup uses chips from Qualcomm and MediaTek.
Xiaomi is getting bigger all over the world. The business had a great year and made a lot of money. In 2024, 42% of its income came from sales in other countries. The business will share its first-quarter 2025 figures on May 27, 2025.
The company’s stock has reflected this momentum, rising more than 50% year-to-date.
As Xiaomi keeps expanding its products, from mobile chips to electric cars, it’s not just chasing global tech giants like Apple and Tesla. It’s signaling that it’s ready to compete with them head-on, using a potent combination of innovation, pricing strategy, and local market advantage.
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