“Only by benchmarking with the iPhone can we stand a chance to catch up and beat it one day,” said Lei, who referred to Apple’s flagship device multiple times in his annual speech at the China National Convention Centre in Beijing where Xiaomi launched its latest products.
In his three-hour one-man show, 53-year-old Lei – with a net worth of US$10.2 billion as of August 15, according to Forbes – was cheered on by an audience of about 3,500, as he shared personal stories and reasserted Xiaomi’s commitment to go after Apple in the premium end of the smartphone market.
“Competition is extremely fierce in the consumer electronics industry,” he said. “Aiming for the high-end [of the smartphone market] forces us to seek breakthroughs in technology, while ensuring our future development and survival.”
Xiaomi Corp launched its latest foldable flagship smartphone series, the Mix Fold 3, on August 14, 2023. Photo: Handout
Apart from targeting Apple, Lei’s rhetoric reflects the company’s bid to compete more aggressively against rival Chinese vendors at home, the world’s largest smartphone market, where an uneven post-pandemic economic recovery has resulted in weak consumer spending.
Xiaomi, meanwhile, found itself tied in fifth place with a resurgent Huawei last quarter.
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Xiaomi’s new Xiaomi Mix Fold 3 smartphone continues with the slim and lightweight design of the previous generation. Photo: Handout
Lei, who is often dubbed “China’s Steve Jobs” by local media, on Monday made parallel comparisons about Xiaomi’s latest flagship foldable smartphone, the Mix Fold 3, with Apple’s top-of-the-line iPhone 14 Pro Max.
While Lei has attempted to paint Xiaomi as a major rival to Apple, the Chinese company’s total market capitalisation of HK$297.05 billion as of Tuesday pales in comparison to Apple’s market cap of US$2.82 trillion as of Monday. Xiaomi will release its second-quarter financial results on August 29.
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In his speech on Monday, Lei said Xiaomi had an “extremely painful, but also fruitful” experience competing in the high-end segment of the smartphone market, which represents handsets priced above US$600, after its initial two premium models – the Xiaomi 10 and 11 – failed to meet sales expectations.
Prices for Xiaomi’s new Mix Fold 3 start at 8,999 yuan (US$1,240). Powered by Qualcomm’s second-generation Snapdragon processor and featuring an optical system co-engineered with German camera maker Leica, the company’s latest foldable smartphone was sold out in three minutes when pre-orders commenced at the conclusion of the event on Monday.
