Xiaomi Group disclosed in its third-quarter financial report released on November 18, 2024 that its revenue in the third quarter reached 92.51 billion yuan, a year-on-year increase of 30.5%, exceeding market expectations.
Looking to the future, Xiaomi has chosen to make a big step to "be compatible" with Apple. Will this be the engine of its next growth? The conspiracy is that if one day you don't want to use an Apple phone and want to change to an Android phone, then when you look at the house full of Xiaomi smart products, you have no choice which phone to buy.
Lei Jun also said publicly: Xiaomi cars want to be the best cars compatible with Apple's ecosystem, and Xiaomi mobile phones aim to become the best mobile phones that support and are compatible with Apple's ecosystem. What? Isn't this Apple's "flatterer"?
So for Apple users, is Xiaomi's ecosystem the choice?
Surrounding Apple sounds difficult, but it's actually even more difficult to do. This requires nearly ten years of continuous investment in building an ecosystem, so why does Xiaomi want to "lick" Apple? Because Xiaomi adopts a non-confrontational market strategy for Apple, choosing to be compatible with Apple's ecosystem rather than competing head-on.
The main reason is that Apple's ecosystem has a huge user base around the world. According to data released by Apple on February 1, 2024, the number of active users of the entire series of Apple devices has reached 2.2 billion. Because Apple users have strong user stickiness and loyalty, avoiding direct confrontation with Apple can reduce the risk of market competition. And Xiaomi achieves seamless connection with Apple devices through technological innovation. For example, the Xiaomi 15 series of mobile phones are fully compatible with the Apple ecosystem, and can achieve file transfer between devices such as Macbook, iPad, iPhone, etc. It not only helps to attract Apple users, but also enhances the added value and user experience of Xiaomi products.
The most fundamental thing is that Xiaomi and Apple have different positioning in the market. Apple is mainly positioned in the high-end market, while Xiaomi is looking for a balance between cost-effectiveness and the high-end market. Xiaomi attracts consumers by providing cost-effective products, which can attract some Apple users to Xiaomi, especially those who seek higher cost-effectiveness or specific functions.
Xiaomi wants to gradually build its own influence in the Apple ecosystem through its ecological openness and cost-effective products, and is committed to providing Apple users with more comprehensive and convenient supporting services and products. As Lei Jun once clearly pointed out, the goal of Xiaomi mobile phones is to become the best mobile phone that supports and is compatible with the Apple ecosystem.
In addition, Xiaomi's performance in the third quarter of 2024 was outstanding, with total revenue reaching 92.5 billion yuan, a year-on-year increase of 30.5%, and adjusted net profit of 6.3 billion yuan. In terms of smartphone business, Xiaomi's revenue was 47.5 billion yuan, a year-on-year increase of 13.9%, and global shipments reached 43.1 million units.
Xiaomi gave up the game thinking and no longer required users to only make "two choices" multiple-choice questions, but turned to the win-win theory of you in me and me in you. At the beginning of this year, when Apple announced that it would give up car manufacturing, Xiaomi increased its investment in car manufacturing. And Xiaomi Auto's special friendliness to Apple users is also reflected in many aspects. In April this year, Lei Jun mentioned in his speech at the Beijing Auto Show that Apple users accounted for 51.9% of Xiaomi SU7 owners, thanks to the deep support of Xiaomi Auto's surging smart cockpit for the Apple ecosystem.The back row of Xiaomi SU7 also supports iPad in the car. After purchasing a special iPad expansion bracket, users can install the iPad on the back of the front seat. After downloading and installing the "Xiaomi Car Expansion Screen" APP, users can achieve native car-like experience such as seat air conditioning adjustment, multimedia adjustment, audio and video entertainment, etc.
Xiaomi's "full ecosystem of people, cars and homes" strategy indicates its development direction in the new decade. Through the high-end and globalization strategies, Xiaomi is expected to achieve greater success in the global market.
At the same time, Xiaomi still has a lot of room for improvement in the ARPU value of its Internet business. With the continuous breakthrough of hardware categories, Xiaomi has great monetization potential in the software field.
Therefore, Xiaomi's challenge to Apple lies not only in hardware, but also in the construction of the overall ecosystem and the improvement of services. In the near future, we will all witness the development and progress of electronic technology.
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