https://lnkd.in/eH5KxNgC Excellent, detailed research on Xiaomi reinvention comeback. 1. Lei Jun had mistaken a brilliant strategy for a niche segment to be a universal law in business. The market had moved, rendering their founding position of online-only, low-margin — a fatal constraint 2. Xiaomi assembled an ecosystem of over 210 partner companies (Huami, Ninebot, etc.), where they provided capital, brand, and supply chain muscle. This “planting a garden” strategy ensured customers had multiple, low-friction reasons to return beyond the phone 3. The split of Redmi (value/online) from Mi (premium/retail) allowed Xiaomi to pursue higher selling price and shed the budget-brand perception, while still capturing wallet share 4. The US blacklisting of Huawei in May 2019 created a massive market opportunity globally, particularly in Europe. Xiaomi, having built its capacity ( global supply chain, R&D), was positioned to quickly land and expand in Europe capturing market share and reaching #1 by mid-2021 5. The SU7 car is not a separate product; it is a cool entry point into the unified HyperOS ecosystem. This move locks customers into an ecosystem (similar to Apple) where leaving their phone, smart home, and car means a significant "loss" of convenience. A "rolling Xiaomi device" might be a vulnerability if HyperOS or overall UX lags behind best-in-class, dedicated systems. It is a constant challenge maintaining excellence across Smartphone, AIoT, and EV simultaneously 5. Xiaomi’s reinvention speed was not primarily down to its superior managerial foresight but was only possible because of pre-existing, hyper-efficient supply chain built by Apple and Tesla. It is a high-level case study of success in location-dependent competitive advantage. The ability to pivot across hardware categories (rice cookers to cars) were enabled by this unique, dense, and Apple-trained manufacturing ecosystem. This advantage is non-transferable to Western-market competitors. Their global expansion plans will face escalating risks tied to China's geopolitical standing Consequence of all of this - By Q2 2025, 60.8% of revenue came from non-smartphone businesses, proving the “Triathlon” model was working : low-margin hardware (including cars) driving high-margin internet services.
Xiaomi's reinvention: How they adapted to the changing market
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Months before collapsing while grocery shopping with his young son, Wang Peizhi was working extensively to prepare Xiaomi’s flagship store for the launch of its first electric vehicle. Wang’s workload had significantly increased following Xiaomi’s ambitious shift from smartphone manufacturing to electric vehicle production, spearheaded by billionaire co-founder Lei Jun. Lei, 55, publicly committed to this transition as his "last entrepreneurial project" and aimed to position Xiaomi as the first tech company to successfully enter the car industry, a challenge even Apple did not conquer. A critical element of realizing this vision involved revamping Xiaomi’s retail network, which fell under Wang’s responsibilities. The company chose to repurpose its existing smartphone stores into showrooms for full-sized electric sedans and SUVs in order to compete with established players such as BYD and Tesla in China’s expanding EV market. However, during the COVID-19 pandemic, Xiaomi significantly downsized the team working on this transformation, reducing staff by about half and leaving roughly 10 people to carry on the effort, according to sources familiar with the situation. #MotiveAsia #Japan https://lnkd.in/g_T_yqYN
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Xiaomi’s founder Lei Jun once promoted his phones on the streets, giving flyers to strangers and showing them how the product worked. He had no fame, no big team, and no support, only strong belief in his idea. Today, he leads a global tech company worth over $50 billion. Xiaomi has grown from a small startup to a giant brand in phones, gadgets, and now electric cars. His new Xiaomi SU7 received more than 1,00,000 preorders within weeks, putting it in direct competition with Tesla. Lei Jun’s journey shows how big dreams can grow from very small beginnings. #startupshivay #XiaomiJourney #TechInspiration #EntrepreneurLife #SuccessStory #BelieveAndBuild
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Samsung has recently begun joint development of next-generation image sensors with Apple at its plant in Austin, Texas, where it plans to supply chips optimized for the power efficiency and performance of Apple products, including iPhones. https://trib.al/xprUBbo
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Fairphone, known for its sustainability and modular design, is entering the US market to capitalize on growing consumer demand for repairable and eco-friendly devices. The company’s approach emphasizes longevity, ethical sourcing, and the right-to-repair movement, positioning itself as an alternative to mainstream brands that often rely on closed ecosystems and frequent upgrades. This expansion reflects a broader trend toward sustainable tech and consumer empowerment in electronics. #Fairphone #Smartphones #RightToRepair #SustainableTech #CircularEconomy #EthicalElectronics #Tech #Innovation #EcoFriendly #ConsumerEmpowerment #USMarketEntry #GreenTechnology #ConsumerElectronics #MobileTechnology #MobileTechnologyNews https://lnkd.in/dbWGcj9H
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CHINA’S EV BOOM FACES REALITY - XIAOMI IN THE SPOTLIGHT A video recently went viral on Chinese social media, posted by a disappointed Xiaomi EV reseller. Launched at ¥600,000 in March, these cars now struggle to sell at ¥400,000. Why? Extreme handling, gimmicky “self-shaking” features, and safety concerns that even experienced drivers find challenging. The lesson is clear: hype and tech brand fame can’t replace engineering, reliability, and consumer trust. China’s EV boom isn’t over, but only brands that deliver real performance will survive. Full text of the original video and translation are in the comments. #ChinaEV #XiaomiEV #ElectricVehicles #EVSafety #ConsumerTrust #AutomotiveIndustry #EVMarket #TechVsReality
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For Xiaomi, a first time automaker, having the courage to keep the customer centricity north star without compromising the brand positioning associated with physical buttons in today's automotive industry is the sign of the tectonic shift happening. The new "Ford, BMW, Audi" definitely will be a Chinese Auto company. Credit: Lukas Timm
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Xiaomi solved the touchscreen debate with their SU7 electric sedan for $70. 😳 They created a modular button bar that magnetically clips beneath the center screen. No compromise required. You can install it yourself in seconds. Here's what makes this different: ↳ It's manufacturer-supported, not an aftermarket workaround ↳ Magnetic attachment with physical locking pins for security ↳ Controls HVAC and media without drilling through menus ↳ Piano-style buttons plus a volume knob This matters because the Chinese market typically associates physical controls with outdated design. Touchscreens dominate there. But Xiaomi is a tech company. They understood the UX problem from both perspectives. The irony runs deep: Traditional automakers eliminated buttons to appear more tech-forward. Now a smartphone manufacturer adds them back because they actually understand human-computer interaction. Studies consistently show physical controls reduce distraction and improve safety. You don't need to verify your finger landed on the right spot. The tactile feedback is instant. The SU7's modular approach opens possibilities beyond buttons. The screen has attachment points on all four sides for future accessories. This is product design that respects user choice rather than forcing a single vision. The debate between touchscreen purists and button advocates was never going to have a winner. Xiaomi just made it irrelevant. Worth noting: The SU7 was delivered over 180,000 units since launching in March 2024. They hit their first 100,000 in 230 days. That execution speed from a first-time automaker deserves attention regardless of your stance on their design choices. Would you buy this $70 accessory or go button less? ----------------------------------- I help growing engineering and tech brands scale their visibility to 100,000+ impressions a month on LinkedIn in less than 30 days — without ads or heavy marketing teams. My system combines engineering-grade storytelling, short-form video, and weekly iteration to consistently attract decision-makers and investors. It’s a low-risk, high-return growth engine that plugs in before you hire a full marketing department. If you're interested in a first meeting where we analyze your brand and I'll provide a week's worth of content for free: -> reach out in the DMs -> or book a meeting in my profile header Great having you here Best Lukas
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I had the opportunity to visit Xiaomi in the summer of 2024, right after they launched the SU7. I not only got to see and use their modular button set, but also explore their entire line of vehicle accessories. Seeing how a tech company approaches automotive accessories completely changed how I think about customer experience. Xiaomi’s lineup includes button sets, fragrance vaporizers, customizable gauges, phone-charging mounts, ambient light bars, Bluetooth speakers, and more. With their new SUV, the YU7, they’ve continued to innovate — adding powered accessory mounts, magnetic programmable buttons, and even a magnetic tissue holder. 🔗 https://lnkd.in/gDYkivmu What’s important here is that: a) The vehicle was designed around these accessories — not the other way around. b) The software instantly recognizes new accessories, letting customers use them immediately. c) Accessories are sold like consumer electronics — off the shelf, easily purchased and replaced. d) Customers can install them in seconds without visiting a dealership or paying labor costs. While Xiaomi’s self-imposed 5% hardware profit cap may not be realistic for most Western automakers — and few have the same integration across smart homes, tablets, and vehicles — traditional OEMs should be watching closely. Chinese brands are setting a new bar for customer-focused innovation, blending automotive and consumer tech in ways that feel effortless. I don’t know when (or if) these brands will enter the U.S. market — but if they do, they’ll arrive with a serious competitive advantage. The time for OEMs to rethink the in-vehicle experience is now.
Tech Content Strategist & Visibility Advisor | Scaling B2B Tech Leaders from 2K to 100K+ Impressions | Proven Visibility System
Xiaomi solved the touchscreen debate with their SU7 electric sedan for $70. 😳 They created a modular button bar that magnetically clips beneath the center screen. No compromise required. You can install it yourself in seconds. Here's what makes this different: ↳ It's manufacturer-supported, not an aftermarket workaround ↳ Magnetic attachment with physical locking pins for security ↳ Controls HVAC and media without drilling through menus ↳ Piano-style buttons plus a volume knob This matters because the Chinese market typically associates physical controls with outdated design. Touchscreens dominate there. But Xiaomi is a tech company. They understood the UX problem from both perspectives. The irony runs deep: Traditional automakers eliminated buttons to appear more tech-forward. Now a smartphone manufacturer adds them back because they actually understand human-computer interaction. Studies consistently show physical controls reduce distraction and improve safety. You don't need to verify your finger landed on the right spot. The tactile feedback is instant. The SU7's modular approach opens possibilities beyond buttons. The screen has attachment points on all four sides for future accessories. This is product design that respects user choice rather than forcing a single vision. The debate between touchscreen purists and button advocates was never going to have a winner. Xiaomi just made it irrelevant. Worth noting: The SU7 was delivered over 180,000 units since launching in March 2024. They hit their first 100,000 in 230 days. That execution speed from a first-time automaker deserves attention regardless of your stance on their design choices. Would you buy this $70 accessory or go button less? ----------------------------------- I help growing engineering and tech brands scale their visibility to 100,000+ impressions a month on LinkedIn in less than 30 days — without ads or heavy marketing teams. My system combines engineering-grade storytelling, short-form video, and weekly iteration to consistently attract decision-makers and investors. It’s a low-risk, high-return growth engine that plugs in before you hire a full marketing department. If you're interested in a first meeting where we analyze your brand and I'll provide a week's worth of content for free: -> reach out in the DMs -> or book a meeting in my profile header Great having you here Best Lukas
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