Xiaomi is fully betting on 5G, but 5G is Huawei’s advantage

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At the 6th Internet World Conference opened in Wuzhen, Lei Jun, founder and chairman of Xiaomi Group, said in an interview that more than ten 5G mobile phones will be launched next year, covering all mid-to-high-end price points, which shows that he is in order to promote Xiaomi mobile phones. The revival of China is fully betting on 5G, but the leader in 5G technology is Huawei, and it is not easy for Xiaomi to bet on 5G to gain a competitive advantage.

Xiaomi bets on 5G for revival

Xiaomi achieved a revival in 2017, and its mobile phone shipments have continued to grow. However, the growth rate has declined again since last year. In the second quarter of this year, there was a 0.2% decline, showing that it was in a dilemma in the smartphone market. This forces it to actively seek change.

Obviously, Xiaomi is taking 5G as an opportunity for it to seek revival this time, hoping to meet the needs of Chinese consumers by providing more abundant 5G mobile phones, seize this wave of replacement opportunities, and strive for a revival opportunity for Xiaomi mobile phones. Before Lei Jun spoke this time, Xiaomi launched the cheapest 5G mobile phone in China, the Xiaomi Mi 9 Pro, and the entire Xiaomi Mi 9 Pro series only has a 5G version, which shows its determination to push 5G mobile phones.

In the 4G era, OPPO and vivo have seized the tide of 4G mobile phone replacement and have risen rapidly. From being far behind the domestic top four to the top four in domestic mobile phones, they even took the opportunity to surpass Xiaomi in the domestic market. So far, Xiaomi has failed to overtake OV in the domestic market. With the lessons learned from the previous car, Xiaomi has decided to invest in 5G this time, hoping to seize the first opportunity in the wave of 5G mobile phone replacement, in order to revitalize the domestic smartphone market.

However, Xiaomi does not have its own mobile phone chip, and its 5G mobile phone progress needs to rely on Qualcomm’s 5G chip progress. This current situation of relying on Qualcomm is the reason why it has to make a fuss about price, and it is also the reason why it chose to launch the lowest price 5G mobile phone in the domestic market. The reason is that we hope to break out in the 5G mobile phone market with the advantage of price.

Similar to Xiaomi, another domestic mobile phone brand, vivo, also relies on Qualcomm’s 5G chips. Vivo has chosen a strategy similar to that of Xiaomi, that is, in the absence of its own core technological advantages, it will break through the 5G mobile phone market at a price. This is the reason why it chose to release the iqoo Pro, the cheapest 5G mobile phone in the domestic market, before Xiaomi. , but obviously it is not Xiaomi’s opponent in the price war, and the name of the cheapest 5G mobile phone is still taken away by Xiaomi.

5G is Huawei’s competitive advantage

When it comes to 5G technology, in fact, the strongest 5G technology among mobile phone companies is Huawei. Whether it is in the domestic market or the global market, Huawei’s 5G patents are ranked first. This is due to the fact that it has been making communication equipment for more than 20 years. The accumulation of 5G technology is also related to its forward-looking layout of 5G technology.

In addition to its advantages in patents, Huawei also ranks first in the world in 5G chips. Huawei took the lead in releasing the world’s first NSA/SA dual-mode chip, and then released the world’s first 5G mobile phone SOC chip this month. It is expected that Qualcomm and Samsung will release 5G mobile phone SOC chips before the end of the year. , which means that Huawei’s 5G mobile phone chips are at least two months ahead of them.

It is precisely because of its advantages in core technology that Huawei, which relies on it, has a high price for its 5G mobile phone. Its first 5G mobile phone, the mate20 X 5G mobile phone, is priced at 6199 yuan, which is much higher than many competitors. The price of its upcoming 5G mobile phone mate30 5G version has dropped, but the price is expected to be as high as 4,999 yuan.

Huawei not only has a leading edge in technology, but also is quite effective in publicity. When other domestic mobile phone brands have adopted Qualcomm’s 5G baseband chips to launch 5G mobile phones, Huawei has vigorously promoted 5G SA independent networking, provoking debates about true and false 5G. , This is because competitors using Qualcomm’s 5G baseband chip X50 do not support 5G dual-mode mobile phones, and then Huawei launched the Kirin 990 5G mobile phone SOC chip, and Huawei vigorously promoted the technological leadership of 5G mobile phone SOC chips.

Huawei’s publicity has obviously had an effect. Consumers are holding a wait-and-see attitude towards 5G mobile phones and are waiting for more mature 5G mobile phones. The sales of 5G mobile phones in September were less than 500,000 units, which is a relatively large 4G mobile phone shipments. , 5G mobile phones can almost be ignored.

The lack of sales of 5G mobile phones naturally makes Xiaomi, which is fully launching 5G mobile phones, at a disadvantage. Coupled with the backwardness of technology, Xiaomi’s 5G mobile phone sales are estimated to be even less. Of course, next year, with the launch of Qualcomm’s mature 5G mobile phone chips, Xiaomi’s 5G mobile phones will no longer lag behind Huawei in technology.

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