Xiaomi challenges Apple with new smartphone chip development

In May 2025, in China, Xiaomi unveiled the Xiaomi 15S Pro, showcasing its new Xring O1 chip, which the company claims rivals the performance of Apple's advanced chips. Priced at 5,499 yuan ($764), the device is positioned as a more affordable option compared to Apple smartphones. The new chip is manufactured using a state-of-the-art 3 nanometer process, similar to the one used for Apple's iPhone 16 Pro and Pro Max. Xiaomi CEO Lei Jun emphasized that while Xiaomi has made significant progress in chip development, the intention is not to disrupt Apple's dominance but to showcase Xiaomi's commitment to technological innovation. The company is investing heavily in research, with plans to allocate 200 billion yuan for R&D over the next five years, starting in 2026, aimed at fostering growth and enhancing its competitive edge in the tech market. Furthermore, Lei announced that Xiaomi will invest at least 50 billion yuan ($6.9 billion) over the next decade in its chip development initiatives. This effort follows a robust investment of 13.5 billion dollars over four years, aimed at developing the Xring O1 chip, which underscores Xiaomi's ambition to establish itself as a key player in the smartphone industry. The market response remains to be seen, as CNBC reports that the claims regarding the chip's performance have not been independently verified. Despite this, Xiaomi's strategy is clear: to challenge established players like Apple by offering competitive technology at a lower price point, as well as focusing on growth through innovation in various sectors including electric vehicles. Xiaomi also hinted at further developments in their automotive sector, with their upcoming SUV, the YU7, expected to launch in July 2025.