Xiaomi has stepped into the high-end chip market and says its new Xring O1 chip works better than Apple’s latest A18 Pro chip in some technical areas, and it also comes with a lower price.
The Xiaomi 15S Pro, which runs on the Xring O1 chip, starts at 5,499 yuan ($764), staying below China’s 6,000 yuan limit for phones that qualify for government discounts, while Apple’s iPhone 16 Pro starts at 7,999 yuan, and the Pro Max version starts at 9,999 yuan.
Xiaomi offers a strong chip at a lower price to compete with Apple
Xiaomi launched the new 15S Pro smartphone with its own Xring O1 chip on May 22, 2025, which CEO Lei Jun claimed performs better than Apple’s latest A18 Pro chip in running games smoothly and producing less heat.
According to Xiaomi, the Xring O1 chip has the same advanced 3-nanometer process as Apple’s and is already in full mass production.
The Xiaomi 15S Pro sells for 5,499 yuan ($764), while Apple’s iPhone 16 Pro starts at 7,999 yuan ($1,111) and the Pro Max version at 9,999 yuan ($1,388).
This pricing gives Xiaomi a big edge among cost-conscious buyers in the local market who want powerful phones without paying too much because it kept the 15S Pro’s price below the Chinese government’s discount limit of 6,000 yuan ($834).
Xiaomi ramps up chip and EV ambitions to challenge global tech giants
Xiaomi has invested heavily in its own chip technology, electric vehicles, and deep research to grow beyond just making smartphones.
The company plans to create a full in-house chip portfolio and rely less on U.S. technology as global rules and restrictions around semiconductors become stricter by spending 50 billion yuan ($6.9 billion) over the next ten years to build its own chips.
Xiaomi will also increase its total research and development spending to 200 billion yuan across five years starting in 2026 to improve its R&D projects, protect it from external shocks, and allow it to compete with tech giants like Apple, Samsung, and Tesla.
CEO Lei Jun revealed early images and key features of Xiaomi’s first SUV, the YU7, at an event, saying the car will launch in July and run on powerful chips from Qualcomm and Nvidia. The SUV will also cover a driving range of 835 kilometers and include advanced driver assistance tools, but Xiaomi has yet to share its cost.
The YU7 will succeed Xiaomi’s first electric car, the SU7 sedan, which was launched last year and got many buyers’ attention. Xiaomi delivered over 28,000 SU7 units in April, down from a record of over 29,000 units in March, after a tragic accident involving this model led to three deaths.
Chinese regulators have since then required carmakers to use more cautious language when describing their driver-assist features to avoid confusing buyers. However, Xiaomi’s sales remained strong despite the incident, which shows the company has made a name for itself in the EV market.
Xiaomi is working on a connected device ecosystem with its 15S Pro smartphone, similar to Apple’s, because the driver can use the phone to unlock a Xiaomi car.
Xiaomi posted record revenue and net profit in 2024 and will release its Q1 2025 earnings on May 27. The company also confirmed that nearly 42% of its total revenue now comes from overseas markets, with its stock rising over 50% due to investor confidence in its chip development, vertical integration, and expansion into new product categories like EVs and connected smart devices.
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