Xiaomi Unveils Affordable Smartphone to Compete with iPhone 17
ByAinvest
Friday, Sep 26, 2025 12:08 am ET1min read
AAPL--
The Xiaomi 17, available in Pro and Pro Max models, starts at 4,499 yuan ($631.20) for the most basic model, rising to 5,999 yuan ($844.60) at the top end [1]. This pricing strategy positions Xiaomi as a low-cost alternative to the iPhone 17, which was recently released by Apple. The base model of the Xiaomi 17 is more than $100 cheaper than the iPhone 17.
Xiaomi's co-founder and CEO, Lei Jun, unveiled the smartphone during a two-hour livestreamed event on Thursday. He emphasized Xiaomi's focus on affordability and innovation, directly comparing the Xiaomi 17's features, such as battery life, display quality, and camera capabilities, with those of the iPhone 17 [1].
The launch of the Xiaomi 17 is part of Xiaomi's broader strategy to expand into the premium smartphone segment. The company is currently a single-digit player in the premium smartphone market, where Apple controls 62% of sales [1]. Xiaomi's aggressive push into this segment is driven by its successful expansion into electric vehicles (EVs), which has tripled its market value over the past year [1].
Xiaomi's foray into EVs has been particularly notable. The company's YU7 SUV, launched in June 2025, outsold the Tesla Model 3 within months of its launch [1]. The YU7 received 289,000 orders within an hour of its announcement, highlighting the high demand for Xiaomi's EVs. Xiaomi aims to ramp up production and start selling its first EV in Europe by 2027 [1].
The new smartphone launch is also accompanied by the announcement of Xiaomi's next-generation operating system, HyperOS 3. This update, based on Android 16, brings enhanced multitasking, a redesigned home screen, new AI features, and improved data protection [2]. The rollout of HyperOS 3 will begin in October 2025, starting with the Xiaomi 15T series and eventually expanding to more Xiaomi and Redmi devices, as well as select Xiaomi TVs [2].
Xiaomi's strategy to challenge Apple and Tesla is multifaceted, encompassing smartphones, EVs, and chipmaking. The company has outlined plans to invest at least $7 billion into developing its own mobile processor, showcasing its commitment to driving innovation beyond consumer gadgets [1]. Xiaomi's aggressive expansion into these sectors positions it as a significant player in the global technology market.
Xiaomi has launched a $630 smartphone to compete with the iPhone 17. The move highlights the company's expansion into the US market and its ambitions to challenge Apple and Tesla. The new phone is a low-cost alternative to the iPhone 17 and showcases Xiaomi's focus on affordability and innovation.
Xiaomi Corp., the Chinese technology giant, has launched a new smartphone priced at $630, aiming to compete directly with Apple's iPhone 17. This move underscores Xiaomi's broader ambitions to challenge U.S. rivals like Apple and Tesla.The Xiaomi 17, available in Pro and Pro Max models, starts at 4,499 yuan ($631.20) for the most basic model, rising to 5,999 yuan ($844.60) at the top end [1]. This pricing strategy positions Xiaomi as a low-cost alternative to the iPhone 17, which was recently released by Apple. The base model of the Xiaomi 17 is more than $100 cheaper than the iPhone 17.
Xiaomi's co-founder and CEO, Lei Jun, unveiled the smartphone during a two-hour livestreamed event on Thursday. He emphasized Xiaomi's focus on affordability and innovation, directly comparing the Xiaomi 17's features, such as battery life, display quality, and camera capabilities, with those of the iPhone 17 [1].
The launch of the Xiaomi 17 is part of Xiaomi's broader strategy to expand into the premium smartphone segment. The company is currently a single-digit player in the premium smartphone market, where Apple controls 62% of sales [1]. Xiaomi's aggressive push into this segment is driven by its successful expansion into electric vehicles (EVs), which has tripled its market value over the past year [1].
Xiaomi's foray into EVs has been particularly notable. The company's YU7 SUV, launched in June 2025, outsold the Tesla Model 3 within months of its launch [1]. The YU7 received 289,000 orders within an hour of its announcement, highlighting the high demand for Xiaomi's EVs. Xiaomi aims to ramp up production and start selling its first EV in Europe by 2027 [1].
The new smartphone launch is also accompanied by the announcement of Xiaomi's next-generation operating system, HyperOS 3. This update, based on Android 16, brings enhanced multitasking, a redesigned home screen, new AI features, and improved data protection [2]. The rollout of HyperOS 3 will begin in October 2025, starting with the Xiaomi 15T series and eventually expanding to more Xiaomi and Redmi devices, as well as select Xiaomi TVs [2].
Xiaomi's strategy to challenge Apple and Tesla is multifaceted, encompassing smartphones, EVs, and chipmaking. The company has outlined plans to invest at least $7 billion into developing its own mobile processor, showcasing its commitment to driving innovation beyond consumer gadgets [1]. Xiaomi's aggressive expansion into these sectors positions it as a significant player in the global technology market.
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