Core Insights - Xiaomi has announced the launch of its self-developed mobile chip "Xuanjie O1" during its 15th anniversary event, marking a significant milestone in its technology capabilities [1][14] - The chip positions Xiaomi as the fourth global and second domestic brand to master mobile SoC core technology, directly competing with Apple's A-series, Huawei's Kirin, and Samsung's Exynos [1][14] Development Journey - Xiaomi's chip development began in September 2014 with the establishment of Pinecone Electronics, initially perceived as a marketing attempt [4] - Despite early setbacks with the Surge S1 chip, Xiaomi invested 8 billion yuan in 2023 alone, totaling 30 billion yuan over ten years, leading to significant breakthroughs in chip technology [4] Technical Specifications - The Xuanjie O1 chip, designed by Qin Muyun, features a 4nm process from TSMC, with a performance score reaching 2 million, surpassing Snapdragon 8 Gen3 [6] - It includes a powerful architecture with one 3.2GHz super core, three 2.8GHz middle cores, and four efficiency cores, along with an advanced GPU supporting ray tracing technology [6][8] AI Capabilities - The chip integrates Xiaomi's self-developed NPU "Kunlun," capable of processing 15 trillion operations per second, significantly enhancing AI performance in photography [8] - The AI algorithms reportedly reduce noise in night photography to half the level of the iPhone 15 Pro [8] Market Positioning - The first device featuring the Xuanjie O1, the Xiaomi 15S Pro, is priced at 5,299 yuan, significantly lower than Huawei's Mate60 Pro, indicating Xiaomi's strategy to penetrate the mid-to-high-end market [8][14] - Xiaomi aims to make top-tier technology accessible to the general public, contrasting with the luxury positioning of competitors [8][14] Product Features - The Xiaomi 15S Pro boasts impressive specifications, including a 2K full-depth micro-curved screen, Leica triple-camera system, and a 6000mAh silicon-carbon battery [8] - The device also features UWB technology for seamless integration with Xiaomi's ecosystem, allowing for automatic unlocking of vehicles [14] Challenges Ahead - Industry experts have noted potential challenges, including limited initial chip production capacity and software compatibility issues, which Xiaomi is actively addressing [12][14] - The company is working on optimizing compatibility for popular games to ensure a smooth user experience [12]

Core Insights - The main focus of the recent Xiaomi product launch was the Xiaomi 15S Pro, which features a significant upgrade in its processor from Qualcomm Snapdragon 8 Gen 2 to Xiaomi's self-developed Xuanjie O1 [1] - The pricing of the Xiaomi 15S Pro starts at 5499, which raises questions similar to those faced by Huawei when it launched its self-developed Kirin processors, as consumers expect domestic chips to be more affordable than foreign alternatives [3] - Xiaomi also introduced the Xiaomi Civi 5 Pro, which is positioned as a more affordable option starting at 2999, making it accessible to a broader audience [5] Product Details - The Xiaomi Civi 5 Pro maintains the same price as its predecessor while offering enhanced features, including a compact design and a 6.55-inch 1.5K display [5] - It is powered by the Snapdragon 8s Gen 4 processor and features a 5000MP front camera, a triple rear camera setup with 5000MP main, 5000MP telephoto, and 1200MP ultra-wide lenses, all utilizing Leica's imaging algorithms [7] - The device boasts a lightweight design with a thickness of 7.45mm and a battery capacity of 6000mAh, supporting 67W fast charging, making it a strong contender in the market for performance and portability [7]

Investment Rating - The report does not explicitly state an investment rating for the industry or Qualcomm, but it discusses market share expectations and strategic positioning, indicating a cautious outlook on market penetration and competition [2][7]. Core Insights - Qualcomm is accelerating its AI PC ecosystem, challenging the x86 architecture with its Snapdragon X Elite/Plus platform, which boasts 45 TOPS NPU performance. Over 85 Windows 11 AI+ PC models are in production or development, with plans to reduce prices to $600 by 2026 to enhance mid-range market penetration [2][7]. - The company is focusing on a hybrid AI architecture that prioritizes on-device processing for privacy and efficiency while leveraging cloud capabilities for complex tasks. This includes transferring smartphone 5G and NPU capabilities to PCs and robotics [3][8]. - Qualcomm is responding to Xiaomi's self-developed chip strategy by emphasizing the coexistence of self-design and outsourcing, maintaining that Xiaomi will still rely on Qualcomm for critical components [4][9]. - The company is restarting its Arm-based server chip business, launching a data center CPU based on the Nuvia Oryon architecture, and collaborating with NVIDIA to enhance performance and efficiency [4][10]. Summary by Sections AI PC Ecosystem - Qualcomm's Snapdragon X Elite/Plus platform is set to challenge the x86 architecture, with over 85 AI+ PC models in development and a target price of $600 by 2026 to penetrate the mid-range market [2][7]. - The Snapdragon X series supports over 750 applications and 1,400 games, addressing previous concerns about the Arm ecosystem's limitations [2][7]. On-device AI and Hybrid Architecture - Qualcomm's hybrid AI architecture emphasizes local data processing for privacy, while cloud resources are utilized for more complex tasks. The company is also promoting its AI Hub with 75 pre-optimized models to facilitate on-device AI development [3][8]. Competitive Landscape - Qualcomm's response to Xiaomi's self-developed chip highlights the balance of cooperation and competition in the industry, asserting that Xiaomi will continue to depend on Qualcomm for essential components [4][9]. Diversification Strategy - Qualcomm is reviving its Arm server chip business with the Nuvia Oryon architecture and plans to integrate its CPUs with NVIDIA's GPUs for improved performance and efficiency in data centers [4][10].

Group 1 - Xiaomi has regained its position as the number one smartphone brand in China in the first quarter of this year, launching the Redmi Turbo 4 Pro with the Snapdragon 8s Gen4 processor and a large 7660mAh battery at a price of 1699 yuan [1] - The company is also set to release the Civi 5 Pro, which will feature the same Snapdragon 8s Gen4 processor, indicating a focus on high-performance devices [1] - Despite these successes, Xiaomi recognizes that to truly compete with Huawei, it must not only surpass Huawei in sales but also achieve self-research capabilities that meet or exceed Huawei's standards [1] Group 2 - The Xiaomi 15S Pro is highlighted as a significant new model, featuring Xiaomi's second self-developed main processor after an eight-year gap since the launch of the Mi 5C with the Surge S1 processor [3] - Xiaomi has been secretly developing processors since 2014, and the company has opted to wait until it can produce a product that competes with Qualcomm's flagship chips before launching [3] - The self-developed SoC named "Xuanjie O1" is set to be announced in late May, with early reports suggesting it will be built using TSMC's 4nm process and will have performance levels comparable to Snapdragon 8 Gen2, although the GPU performance may be slightly lower [5][7] Group 3 - The Xuanjie O1 processor is expected to have lower power consumption due to the advanced 4nm technology compared to Huawei's 7nm Kirin 9XXX, indicating a technological advantage [7] - There are questions regarding the pricing strategy for the Xiaomi 15S Pro, especially in comparison to the Xiaomi 15 Pro, which uses the Snapdragon 8 Gen1 processor [7]