Core Viewpoint - Xiaomi is focusing on managing consumer expectations regarding the pricing and features of its upcoming YU7 model, indicating a strategic approach to market positioning and consumer engagement [2][4]. Sales Performance - Xiaomi's 618 sales event achieved a record-breaking total payment amount of 35.5 billion yuan, surpassing previous sales records [2]. - The cumulative sales amount reached 34.3 billion yuan just before the event, indicating strong pre-event consumer interest [2]. Product Launch and Features - The YU7 model is expected to have a comprehensive upgrade in configuration, with its standard version's performance comparable to the SU7 Pro, although it will be priced higher [4]. - The YU7 has shown a high user retention rate, with 60% of users being first-time registrants, indicating a successful penetration into new customer segments [3]. Market Position and Competition - Xiaomi's SU7 series has seen significant success, with over 250,000 units delivered and a monthly delivery rate exceeding 28,000 units as of May [4]. - The company aims to compete with established brands like Midea and Haier in the home appliance sector, with aspirations to be on par by 2030 [2]. Production and Delivery Challenges - Despite the high demand for the SU7 series, the delivery cycle remains a concern, currently estimated at 38-42 weeks [4]. - Xiaomi is expanding its production capacity with the introduction of 700 precision robots, although short-term improvements in delivery times are not anticipated [4]. Product Ecosystem - Xiaomi's tablet lineup, including the Pad 7 Ultra and Pad 7S Pro, is positioned to compete directly with Apple's iPad, achieving top sales in specific price segments during the 618 event [5][6]. - The company has seen significant growth in its smart home appliance sector, with a year-on-year increase of 113.8% in sales, particularly in air conditioners, refrigerators, and washing machines [6].

Core Viewpoint - Xiaomi has successfully developed its self-designed mobile SoC chip "Xuanjie O1" after years of setbacks, marking a significant step in its ambition to enhance its technological capabilities and compete in the high-end smartphone market [2][5][19]. Group 1: Development and Challenges - Xiaomi's "Xuanjie O1" chip utilizes second-generation 3nm technology and is currently featured in the Xiaomi 15S Pro and Xiaomi Pad 7 Ultra [2]. - The development of SoC chips is complex, involving multiple critical components such as CPU, GPU, and ISP, which directly impact the overall performance of mobile devices [4]. - Xiaomi's previous attempts at chip development faced significant challenges, leading to the shutdown of its chip division in 2017 after the underwhelming performance of its second-generation chip [9][10]. Group 2: Investment and Strategy - As of April 2023, Xiaomi has invested over 13.5 billion yuan in the "Xuanjie" project, with a projected investment of over 6 billion yuan for the year [6]. - The company plans to invest an additional 200 billion yuan in core technology research over the next five years to solidify its position in the semiconductor industry [7]. - Xiaomi's strategic decision to restart its chip development was influenced by its high-end market ambitions and the need to control its technology stack, similar to competitors like Apple and Huawei [15][16]. Group 3: Market Reception and Future Plans - The release of the "Xuanjie O1" has elicited mixed reactions, with some praising its potential while others question its originality and performance [7][19]. - Xiaomi aims to focus on flagship chips initially, with plans to tackle 5G modem development next [8]. - The company is also exploring opportunities in automotive chips, indicating a broader vision for its semiconductor capabilities [21]. Group 4: Talent Acquisition and Industry Context - Xiaomi's chip development team has grown to over 2,500 members, bolstered by talent from the recent wave of chip startups in China [17][18]. - The competitive landscape for chip development in China has seen a surge in new companies, but challenges remain as some firms, like OPPO's Zheku, have ceased operations [19][21].