Timon Harz

November 27, 2024

Phone Maker Xiaomi Made the Car That Apple Couldn’t

Great build, deeply integrated tech, and unrivaled connectivity

For years, rumors about Apple’s car have been swirling. We've all heard about the "Apple Car," an electric vehicle that was supposed to revolutionize the automotive world, just as the iPhone did for smartphones. But despite years of speculation, Apple has yet to deliver. In the meantime, a new contender has emerged: Xiaomi. The Chinese tech giant, best known for its smartphones, has shocked the industry with its own electric car, the Xiaomi SU7. And the timing couldn't be more intriguing. While Apple continues to tread cautiously, Xiaomi has dived headfirst into the electric vehicle market, seemingly poised to do what Apple couldn’t—make a car that blends cutting-edge tech with performance. Could Xiaomi’s electric vehicle be the future, while Apple’s car project remains a distant dream? Let’s take a closer look at how Xiaomi has pulled this off​.

Xiaomi’s Rise in the Tech World

Xiaomi’s success story is nothing short of remarkable, and it’s a prime example of how innovation, strategic vision, and community engagement can disrupt industries. Starting as a mobile phone manufacturer in 2010, Xiaomi quickly became known for its disruptive pricing and efficient online sales strategy. By launching a limited number of phones and leveraging a strong user community, they created a loyal fanbase eager to provide feedback and pre-order products. This not only minimized marketing costs but also established Xiaomi as a force in the smartphone industry, even at low-profit margins​.

But what truly sets Xiaomi apart is its ecosystem approach. While Apple has maintained a more siloed strategy with its devices and services, Xiaomi’s ambitious strategy involved creating a seamless network of smart devices, all interconnected and operating under a shared platform. Their ability to integrate phones, smart home products, wearables, and more has set them apart as a global leader in the Internet of Things (IoT). This ecosystem is a core element of Xiaomi’s strategy, building consumer loyalty by making it harder for customers to switch to competing brands the more Xiaomi products they own​.

With its aggressive international expansion, a keen understanding of local markets, and the rapid deployment of its ecosystem approach, Xiaomi has positioned itself as more than just a phone maker. It's a tech giant with its sights on the future, perhaps even giving Apple a run for its money when it comes to shaping the next generation of tech-driven mobility​.​

The Xiaomi SU7 Electric Car

The Xiaomi SU7, revealed as the company’s first foray into the electric vehicle market, is an impressive step in its expansion beyond smartphones. This sleek SUV features a striking design, showcasing sharp, modern lines that emphasize both luxury and high-performance. Its performance specs are equally compelling, with a 663-horsepower variant that promises thrilling acceleration and a fast 0-100 km/h time. This makes the SU7 a serious contender in the EV market, competing with other established electric vehicles in terms of both power and design​.

Beyond its raw performance, the Xiaomi SU7 integrates seamlessly with the brand's broader ecosystem, creating a unique experience for users already familiar with Xiaomi products. As part of its vision for a smart, connected future, the SU7 allows owners to control various Xiaomi devices from within the car itself. This means that, from the car’s interface, users can control their home appliances, such as robotic vacuums, air conditioners, and even smart lighting. The SU7 essentially becomes a mobile hub, extending Xiaomi’s home automation system into the car, a feature that further blurs the line between smart devices and traditional vehicles​.

This integration into Xiaomi’s ecosystem is a key differentiator for the company, as it offers consumers a cohesive experience that extends beyond just the vehicle. It also gives Xiaomi an edge over other automakers, including Apple, which has yet to present a car that is as deeply integrated into a broader technology ecosystem. For Xiaomi, the SU7 represents more than just an electric vehicle—it’s a step toward creating a fully interconnected future, where every device, from your smartphone to your car, works in harmony​.

Apple's Struggles in the Electric Car Market

Apple's car project, known as "Project Titan," has been a complex and secretive journey, with the company experiencing delays and challenges over the years. Originally launched around 2014, the project has faced significant setbacks, including leadership changes and shifts in strategy. Apple has invested heavily in R&D, spending hundreds of millions of dollars on engineering, AI systems, and closed-road testing, but a definitive product has yet to materialize​.

Initially, Apple aimed to revolutionize the automotive industry with a fully autonomous vehicle, even considering a design without traditional features like steering wheels. However, the company’s vision has been tempered over time, with the focus now shifting to autonomous capabilities, likely for a robotaxi service, rather than creating a car for individual consumer ownership​.

A major hurdle has been Apple's transition from consumer electronics to automotive manufacturing. The company has little experience in the automotive sector, which requires a unique set of skills and manufacturing processes. Additionally, Apple’s ambitious goal of achieving full autonomy by 2025 puts it in direct competition with established players like Tesla and Waymo, which have had years of experience in self-driving technology​.

Despite these challenges, Apple continues to make progress with a dedicated team of engineers and an AI-focused approach. Yet, many insiders are skeptical about the project's future, questioning whether Apple will ultimately release a car or simply continue to refine its software and systems for existing vehicles, such as its popular CarPlay feature​.

Apple’s struggles contrast sharply with Xiaomi’s aggressive entry into the EV market, where the company has already unveiled a fully electric vehicle, showcasing its commitment and ability to deliver a product in an industry Apple has yet to conquer.

Why Xiaomi Could Win the Race

Xiaomi’s aggressive approach to entering the electric vehicle (EV) market sets it apart from Apple’s more cautious, slower pace. The Chinese tech giant has capitalized on its strong brand loyalty within China and its expanding international presence to launch a vehicle that speaks directly to a younger, tech-savvy audience. Xiaomi’s existing customer base, already invested in its ecosystem of smartphones, smart home products, and wearables, offers an immediate platform for its car to succeed. The company has positioned the Xiaomi SU7 not just as a car but as a part of a connected ecosystem, integrating seamlessly with other Xiaomi devices. This smart, integrated approach is particularly appealing to users who are already familiar with Xiaomi’s affordable yet feature-rich products​.

In contrast, Apple has taken a much more cautious route with its own car project, facing management indecision, leadership changes, and a lack of clear direction. While Apple’s focus has shifted toward developing self-driving technologies, rather than a traditional consumer vehicle, its slower pace in launching a product has left the door open for competitors like Xiaomi. Apple’s deliberate approach, while ensuring high standards of safety and innovation, may ultimately hinder its ability to make a timely entry into the automotive space, especially as companies like Xiaomi and Tesla move quickly to capture the growing demand for electric vehicles​.

Xiaomi’s speed, agility, and integration with its existing tech ecosystem give it a competitive edge, positioning the company to disrupt the auto industry much faster than Apple, which remains mired in internal challenges.

The Future of Xiaomi's Electric Cars

Xiaomi's future in the electric vehicle (EV) space looks poised for significant expansion, with the company planning to launch several new models in the coming years. One such vehicle is the highly anticipated MX11 SUV, which is expected to build on the success of the Xiaomi SU7, combining cutting-edge design with smart technology. This SUV will likely continue Xiaomi's focus on integrating its existing tech ecosystem, offering a seamless experience for users already familiar with its smartphones and smart home products. With an expected performance of up to 650 horsepower, the MX11 promises to offer a competitive edge in both power and innovation​.

Xiaomi’s approach to EVs is not just about creating standalone vehicles but rather about integrating them into a broader, connected lifestyle. The company’s vision includes expanding its electric car lineup globally, tapping into markets outside of China, where it already has a strong presence. As Xiaomi accelerates its EV development, the company is also laying the groundwork for its cars to integrate with its smart home and IoT devices, offering a unique proposition to consumers looking for a fully connected, tech-driven lifestyle​.

In stark contrast, Apple’s car project, although well-funded and ambitious, remains mired in uncertainties. The project has faced leadership changes, strategic pivots, and a lack of clear product timelines. While Apple has shifted its focus towards autonomous driving and AI technology, it is still unclear when—or if—the company will ever release a physical car. Much of Apple’s strategy has revolved around creating a car suitable for robotaxi fleets, rather than developing a car for individual consumers, a vision that diverges significantly from Xiaomi’s consumer-oriented EVs​.

Xiaomi's aggressive expansion into the EV market, with its emphasis on smart integration and quick market deployment, sets it on a path to outpace Apple in the race to redefine the future of mobility. The company's ability to scale its technology and tap into existing customer bases gives it a competitive advantage that Apple is still working to realize.

Conclusion

Xiaomi’s bold entry into the electric vehicle market is shaking up the automotive industry, positioning the company as a serious contender in a field dominated by established players like Tesla. With its commitment to fast-tracked development, cutting-edge technology, and seamless integration into its broader ecosystem of smart devices, Xiaomi is setting itself apart from traditional carmakers. While Apple has struggled to define its vision for Project Titan, Xiaomi’s strategy to roll out connected, tech-driven cars like the SU7 and upcoming models such as the MX11 shows that it is ready to redefine the future of mobility.

As Xiaomi continues to innovate and expand its reach, the question remains: will Xiaomi’s approach to EVs ultimately revolutionize the car market in the same way Apple transformed the smartphone industry? Only time will tell, but one thing is certain—Xiaomi’s rapid progress is positioning it as a formidable player in the race for the future of cars.

Press contact

Timon Harz

oneboardhq@outlook.com

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