Xiaomi: Progress In Chipmaking Makes It A Good Bet But Risks Remain

EqualOcean
2.37K Followers

Summary

  • Xiaomi's revenues were in an upward trend following on from 2017, whereas the smartphone sector and foreign incomes were its main drivers.
  • In a high-stakes market, even though Xiaomi has built chips for over seven years, it still struggles to remain competitive.
  • Xiaomi can benefit from China's rising market share in the global semiconductor area, with increasing production capacity.
  • Apart from the industry opportunities, the firm has also made every effort to boost investments and R&D.
  • However, the local backward technology processes and threats from the US will remain troublesome issues for Xiaomi on its chip-making journey.
Day 2 - GSMA Mobile World Congress 2019
Photo by David Ramos/Getty Images News via Getty Images

Xiaomi released its new chip – Surge C1 – at its Spring Meeting on March 29, 2021, attracting massive public attention. Moreover, the latest phone, Mix Fold, conforms to the firm's increasing presence in the high-end bands, which in this case is only possible thanks to the Surge C1.

This article was written by

2.37K Followers
EqualOcean is an investment research firm and information service provider focusing on China's Technology, Automotive and Consumer Internet sectors. With unique research and due diligence methodology, we provide tailored insights into a wide range of Chinese equities, empowering our clients' value-added decisions. Founded in 2014, EqualOcean is headquartered in Beijing and has offices in Shanghai, Shenzhen and New York.For more information, contact us at contact@equalocean.com.

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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