Apple(US:AAPL) Jing Ji Guan Cha Wang·2025-08-20 01:34Core Viewpoint - Xiaomi is aggressively pursuing a "high-end" strategy to compete with global leaders like Apple, as evidenced by its recent financial performance and strategic focus on high-end products [3][4]. Financial Performance - In Q2, Xiaomi reported revenue of 116 billion yuan, a year-on-year increase of 30.5%, marking the third consecutive quarter of exceeding 100 billion yuan [2]. - Adjusted net profit reached 10.8 billion yuan, up 75.4% year-on-year, with multiple metrics hitting historical highs [2]. Strategic Focus - Xiaomi's emphasis on "high-end" products was highlighted by President Lu Weibing, who mentioned the term 10 times during the earnings call, indicating its critical importance to the company's strategy [2][3]. - The company is investing heavily in research and development, with R&D spending reaching 7.8 billion yuan in Q2, a 41.2% increase year-on-year, and the number of R&D personnel exceeding 22,000 [4]. Product Development - Xiaomi's high-end strategy extends beyond smartphones to include its entire ecosystem, including automotive and home appliances [4]. - The average selling price of Xiaomi's cars has surpassed 250,000 yuan, positioning them competitively against brands like BMW and Mercedes [4]. Market Position - In the Chinese market, Xiaomi maintained a leading smartphone market share of 16.8% in Q2, with high-end models accounting for 27.6% of its sales [5]. - The company has seen significant growth in the high-end segment, with market share in the 4,000-6,000 yuan price range rising to 24.7%, an increase of 4.5 percentage points year-on-year [5]. Competitive Landscape - Xiaomi's competition with Huawei and Apple is intensifying, particularly in the high-end market, where Huawei has regained its position as a leading player [5][11]. - Despite Xiaomi's growth, it still lags behind Apple in terms of overall scale and profitability, with Apple's revenue for Q3 2025 reaching approximately 940.36 billion yuan [11]. Global Expansion - Xiaomi's international strategy focuses on emerging markets, with over half of its sales in the high-end segment coming from overseas [7]. - The company has achieved significant market penetration in Southeast Asia and ranks second in Europe and Latin America [7]. Future Outlook - Xiaomi aims to reach a target of shipping 200 million smartphones, positioning itself as a potential challenger to Apple and Samsung in the global market [7]. - The ongoing competition between Xiaomi and Apple is expected to be a significant narrative in the global tech industry in the coming years [12].