Technology & Future/Automotive & Mobility

How Xiaomi Succeeded Where Apple Stopped: A New Era of Mobility

While Apple canceled its $10 billion car project, Xiaomi has rapidly delivered over 500,000 vehicles and achieved its first quarterly profit in the EV sector. This article reveals the five key strategic choices that allowed Xiaomi to succeed where the Cupertino giant stumbled.

Yasiru Senarathna2025-12-07
Xiaomi SU7 electric vehicle

Xiaomi SU7 electric vehicle

Advertisement

Things have flipped in a big way for Xiaomi, the big smartphone player. They hit a goal that their high-end competitor Apple could not reach. That is real, widespread success in the tough electric vehicle market. Apple spent a whole decade and billions on Project Titan. In the end, they canceled it. Xiaomi Auto did the opposite. They launched their cars successfully. They ramped up production fast. They delivered more than 500,000 vehicles in less than two years. They even made their first quarterly profit in that new business area. People in the industry wonder now how Xiaomi pulled it off. They also think about what Apple overlooked.


Xiaomi jumped into the car world with amazing speed. They kept things practical and smart about the market.


They officially brought out their first electric vehicle, the SU7 sedan. It goes head to head with the Tesla Model 3. That happened in March 2024. Then came the YU7 SUV in the middle of 2025. All this quick action came from their strong skills in making things and handling supply chains. It let them beat their own big goals. At first, they aimed for 350,000 deliveries in 2025. Now they look set to go past 400,000 for the whole year.


The figures tell the story clear enough. They just marked their 500,000th vehicle made. That took a bit more than 19 months. It sets a record in the global new energy vehicle field. Plus, demand stayed high. In November, they delivered over 40,000 units. That pushed their electric vehicle and AI parts into profit for the first time. It was in the third quarter of 2025. This fast growth and money shift highlight a key strategy gap.


Apple's Billion-Dollar Misstep


Apple had endless money and a name for getting things just right. They poured about 10 billion dollars into Project Titan over ten years. Still, they shut it down quietly in early 2024. What went wrong? Most agree it came from too much ambition, too much hiding things, and trouble settling on a solid product for the market.


The Pursuit of Perfection: Apple chased total perfection right from the start. Reports say they wanted a game-changing, fully self-driving car at Level 5. That dream turned out hard to grab. It caused fights inside, changes in leaders, and plans that kept shifting.


Secrecy vs. Speed: Apple's usual secret ways help with gadgets like phones. But they slowed down the car work. Xiaomi went a different route. They shared openly, showed early models, and got input from users. It felt like rolling out a popular phone.


The Margin Trap: The car business has slim profits compared to what Apple does main. Leaders wondered if it made sense to jump into something with low returns and huge spending. The full self-drive idea did not pan out easy. A regular electric vehicle seemed not special enough for Apple. It would not justify all that cash.


Xiaomi's Winning Strategy: The 'Human x Car x Home' Ecosystem


Xiaomi did not stumble into this win by chance. They planned it out with a fresh angle that used what they do best.


Ecosystem Integration: They built more than just a car. It fit into their big Human x Car x Home smart setup. The SU7 and YU7 link tightly with HyperOS, their system. It connects smoothly to a person's Xiaomi phone, watch, and home stuff. For the many loyal Mi Fans, the car feels like a normal add-on. Xiaomi made sure it works well with others too. Like Apples setup. They added iPhone UWB keys and full CarPlay. That draws in buyers from everywhere.


Pragmatic Product and Pricing: Apple aimed for something bold and pricey. Xiaomi went practical, competitive, and cheap enough for most. They based their first cars on winners like Tesla's Model 3 and Y. But they priced them low to grab the everyday crowd. That strong value for money is Xiaomi's strong suit in phones. It carried over perfectly to electric vehicles.


Manufacturing and Supply Chain Mastery: Xiaomi knows hardware inside out. They build at huge scale. They put big money into their own full production line. Their Beijing plant can make over 500,000 cars a year. Scaling up fast is tough for new car makers. Xiaomi did it thanks to years of making tons of electronics. They hit the market quick. They handled the huge demand. That gave them an edge as first in from tech.


Xiaomi switched from gadgets to everyday electric cars in a flash. It shows real smart moves in business. They skipped chasing a perfect car dream like Apple. Instead, they used their skills in hardware, linking things, and making lots cheap. Xiaomi proves the next big car company could come from tech centers. Not just old spots like Detroit or Stuttgart.

Advertisement

Read More

Advertisement