At Xiaomi’s 2025 Investor Conference, founder Lei Jun shared deep insights into the company’s core strategies with global investors. Currently ranked among the top three smartphone makers worldwide, Xiaomi is also accelerating its expansion into the electric vehicle and semiconductor sectors.

This article summarizes the key highlights of Lei Jun’s remarks, shedding light on the strategic logic behind Xiaomi’s development.

Why Is Xiaomi Dominating the Smartphone Market?​

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Xiaomi has held the No. 3 spot globally in smartphone sales for 19 consecutive quarters and reclaimed the top position in China’s market in Q1 2025. Lei Jun credits this success to two main factors:

(1) High-End Strategy​​

After years of focusing on affordable devices, Xiaomi shifted toward premium smartphones five years ago. Its first flagship, the Xiaomi 10 (priced at ¥3,999), initially faced skepticism but proved successful. Today, Xiaomi’s high-end products—ranging from phones to home appliances like air conditioners and TVs—are gaining traction.

Lei Jun emphasized:“High-end is our only path forward. We will keep pushing boundaries, even if it means short-term sacrifices.”

(2) New Retail Model​​

To complement online sales, Xiaomi built a global offline network of 16,000 stores​​ (targeting 20,000 by year-end). This “efficient retail” approach balances cost and convenience, enabling Xiaomi to reach consumers in smaller cities while maintaining low prices.

Lei Jun noted:“We’re adapting our e-commerce expertise to brick-and-mortar stores, making quality products accessible worldwide.”

How Did Xiaomi’s Car Business Take Off So Fast?​​

Xiaomi launched its first electric vehicle, the SU7, in 2024 and plans to release the luxury SUV YU7 soon. Lei Jun attributes its success to three pillars:

(1) Full Commitment​​

Lei Jun leads the automotive division personally, with a $6.5 billion investment and full backing from Xiaomi’s resources.

He declared:“We treated car-making as a do-or-die mission. Success isn’t guaranteed, but we’re all-in.”

(2) Learning from Giants​​

Despite no prior experience in automotive manufacturing, Xiaomi adopted a “respectful, methodical” approach, benchmarking against Tesla and Porsche.

Lei Jun stressed:“Cars are complex, but we’re learning fast. Safety and quality are non-negotiable.”

(3) Leveraging Xiaomi’s DNA​​

The SU7 became a hit by combining high performance​(e.g., 700 TOPS computing power) with affordability. For YU7, pre-orders tripled initial projections, with 60% from new Xiaomi users.

 Lei Jun said:“Our ‘one product at a time’strategy works. People trust us to deliver.”

Breakthroughs in Chipmaking​​

Xiaomi unveiled its first 3nm smartphone chip, the Xuanjie O1, after a decade-long R&D journey. Key points:

Investment: Over ¥13 billion spent over 4.5 years.

Long-Term Vision: Lei Jun vowed to invest ¥50 billion more over the next decade to stay competitive.

Team Effort: The chip team defied expectations, proving Xiaomi’s resolve in core technologies.

What’s Xiaomi’s “Moat”?​​

Lei Jun outlined three pillars securing Xiaomi’s long-term success:

(1) Ecosystem Synergy​​

Xiaomi’s interconnected ecosystem (phones, cars, appliances) creates seamless user experiences. For example, Xiaomi cars integrate with smart home devices, enhancing brand loyalty.

(2) Scalable Business Model​​

Key strengths include:

Affordable, high-quality products.

Efficient offline + online retail networks.

A track record of creating blockbuster products(e.g., SU7).

(3) Tech-First Mindset​​

Xiaomi pledged ¥200 billion in R&D over the next five years, focusing on chips, AI, and operating systems​​.

Lei Jun emphasized:“Technology is our foundation. Only through relentless innovation can we stay ahead.”

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Message to Investors​​

Lei Jun acknowledged past challenges but remained optimistic:

“Some doubted us when we started, but look at where we are today. We’re grateful for long-term supporters and promise to deliver even better results.”

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Xiaomi’s journey from smartphone underdog to tech powerhouse showcases a blend of ​​strategic focus, relentless execution, and bold bets on innovation​​. Whether it’s cars, chips, or global expansion, Lei Jun’s vision is clear: Build a future where technology improves everyday life for everyone.