Xiaomi bets big on its new electric vehicle — targets 20 million premium users

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Chinese consumer electronics company Xiaomi revealed Thurs., Dec. 28, 2023, its long-awaited electric car, but declined to share its price or specific release date.
CNBC | Evelyn Cheng

BEIJING – Chinese smartphone company Xiaomi believes it’s identified a consumer niche that will pay up for its upcoming electric car in a fiercely competitive market.

“We think it’s a good starting point for us in the premium segment because we have already 20 million premium users in China based on the smartphone,” Xiaomi Group President Weibing Lu told CNBC ahead of the car’s international reveal at the Mobile World Congress in Barcelona, which kicks off Monday.

“I think the initial purchases will be very overlapped with the smartphone users.”

He said the company considered a range of price points, from entry level to luxury, for a car it’s spending $10 billion to develop.

Xiaomi revealed its SU7 electric car in China in late December but has yet to announce a specific price. Lu said a formal release would come “very soon” and indicated domestic deliveries would start as soon as the second quarter.

The Beijing-based company is a market leader in the smartphone industry, ranking third in global shipments behind Apple and Samsung, according to Canalys. Data from the tech market analysis firm showed that Xiaomi captured about 13% of the global market and shipped 146.4 million phones in 2023.

The company in recent years has also branched out into TVs and home appliances, which are smartphone-controllable and often sport a sleek, white design. Most of Xiaomi’s revenue is from phones, with just under 30% coming from appliances and other consumer products.

Xiaomi has generally been known for more affordably priced products. That’s raised doubts about whether it can sell an electric car – promoted as a rival to Porsche – in a market where even established EV giants like BYD are slashing prices.

In the future we think it’s not [that] we give the instruction to the device but actually [that] the device can understand your needs and meet your needs proactively
Weibing Lu
Xiaomi, president

Lu said Xiaomi’s approach is based on ecosystem development, as well as a smartphone “premiumization” strategy launched in 2020 that has since “achieved very good progress.”

In an earnings call in November, he noted the company benchmarked its latest Xiaomi 14 phone to the iPhone 15 Pro, and claimed the new device was “overtaking” Apple‘s, according to a FactSet transcript.

However, also eating into Apple’s market share is Huawei, whose popular Mate60 Pro starts at 6,499 yuan ($900), between the price range of the Xiaomi 14 Pro and iPhone 15 Pro.

Huawei saw smartphone shipments in the mainland surge by 47% year-on-year in the fourth quarter, putting it ahead of Xiaomi, according to Canalys.

Building on its tech capabilities as a telecommunications and smartphone company, Huawei has swiftly become a player in China’s electric car market.

The company launched the Aito vehicle brand in late 2021 and sells its HarmonyOS operating system and other software to multiple auto manufacturers. Huawei also promotes some of those cars, including the premium-priced Aito M9 SUV, by showing them in its smartphone stores.

Apple has yet to formally enter the electric car market despite reports it has been working on one. In the fall, Chinese startup Nio released its own Android smartphone.

Ecosystem development

Xiaomi launched a new operating system in the fall called HyperOS.

It claims the system includes an artificial intelligence component that can learn from user behavior to automatically adjust connected devices, such as home lighting.

“In the future, we think it’s not [that] we give the instruction to the device but actually [that] the device can understand your needs and meet your needs proactively,” Lu said.

The company calls the strategy “human x car x home.”

HyperOS is only available on Xiaomi’s 14 phone right now. But the system is due for rollout in the coming months to appliances and the forthcoming car, Lu said.

Spending billions of dollars on the ecosystem and the car are all part of Xiaomi’s efforts to survive in an industry the company expects will become even more competitive.

In 10 or 20 years, the electric vehicle market will likely be very similar to that of smartphones today — with the top five brands holding about 70% of the market, Lu said. “Without huge funds, we don’t think we can be the final players.”

After the first car, the next step for Xiaomi is to build its own factories and make the key components in-house, Lu said.

Xiaomi earlier this month announced its new smartphone factory in Beijing had started operations, with production capacity for more than 10 million devices.

For the SU7 car, Chinese government releases currently list a subsidiary of state-owned Baic Group as the manufacturer. Xiaomi told CNBC it didn’t have public information to share at the moment.

Overseas market an ‘amplifier’ for Xiaomi

Similar to an increasing number of Chinese companies, Xiaomi is looking overseas for future growth. For the last six years, between 40% to 50% of the company’s revenue came from outside mainland China, primarily Europe and India.

Lu, who joined Xiaomi Group in 2019, is also president of its international business department and said he spends “a lot of time” on the overseas market.

“It will be the amplifier of Xiaomi’s business,” he said, noting the overseas consumer electronics market is about triple the size of China’s.

As part of his trip to Barcelona for MWC, Lu said he’s visiting Paris, along with Africa and the Middle East.

He acknowledged the political environment makes it more difficult for Xiaomi to go global, but said the company can overcome those challenges by building up in-house capabilities and diversifying the business globally and by product.

As for the car, Lu declined to specify a timeframe for its overseas launch, but said it typically takes two to three years.

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19 Comments

  1. This muscle attaches to the coracoid strategy of the scapula, or what we call
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    clavicle/collarbone, and also attaches to the upper arm bone.
    On the opposite hand, the Reverse Cable Fly with a high
    cable pulley can goal the rear deltoids. Cable Rows primarily target the again, specifically the lats, rhomboids,
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    This will help minimize any potential dangers from malfunctioning equipment during your coaching session. To perform the Cable Standing Squeeze Higher Chest Press, stand in a staggered
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    without leaning together with your physique weight to cheat the movement.
    The cable workout routines on this record will engage the complete pec
    muscle, with particular moves for the upper, center, and lower
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    workout routines in your next cable chest exercise, and also you’re looking forward
    to chest day. This train has your arms barely decrease than a
    regular cable crossover which prompts extra muscle fibers.
    This makes the movement easier, so up the resistance to maximise your features.

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    your self.
    Trying to study how one can goal each of your muscle teams appropriately (and effectively) –
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    In this motion, you’re pulling the resistance bands from high to low positions in a hugging
    motion. If you’re having trouble performing a full push-up,
    follow an easier push-up variation, the knee push-up.
    The wall push up dramatically reduces the pressure on the arms, higher again, and abs.

    To do it, arrange two cable pulleys at a low place and seize one handle in every hand.
    Lean barely forward, and bring your arms together in front of your chest, maintaining them straight or
    barely bent. However,they use much much less weight and you
    keep your arms straight throughout, removingthe urgent factor.

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    the upper chest extra successfully. Focus on sustaining
    proper form throughout every repetition to fully
    have interaction the higher chest muscles and keep away
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    Choosing dumbbells which would possibly be appropriate in your
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    This can be accomplished when utilizing a bench as your body might be positioned against gravity.

    This will give you more weight AND it offers
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    When it involves presses, you might discover that you just
    need a heavier load, during which case you can place
    a dumbbell of sufficient weight over the top of the cable machines weight stack.

    Secondly, progressively construct your endurance earlier than you add resistance or weight to
    bench press accent workouts. Keep In Mind to avoid pushing your self too exhausting firstly of your fitness journey
    to guarantee you’re getting the most out of your workouts.
    Cable workouts are an effective and versatile way to work out your complete body.
    Cable machines are found in most gyms and let you carry out a broad variety of workout routines that target particular muscle tissue.
    They allow you to do compound actions, which are great for building energy and muscle mass.

    In this article, we will take a glance at some of the greatest cable workout routines
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    The cable standing chest press primarily targets your pectoralis main, focusing on the highest and middle of the muscle.
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    The horizontal cable crossover is one other one of the prime chest workouts used to focus on chest muscular
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    If you’re in search of simple cable machine chest workouts to add to your routine, cable crossover is
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    supersets or dropsets into your cable chest workouts can facilitate
    muscle hypertrophy and endurance, whereas additionally enhancing general power.
    Supersets involve seamlessly performing two exercises
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    extend weight or resistance in a controlled
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    The cable fly does an excellent job of isolating the pectoral
    muscle tissue, making it a great selection for focused muscle development.
    Attempt to incorporate completely different workouts to focus on totally different areas of the chest muscular
    tissues and create a well-rounded exercise routine.
    The Cable chest exercises listed will be carried out
    with reasonable masses and repetitions to emphasize both muscular hypertrophy (muscle growth) and muscular endurance.

    Finally, if you’re in search of one more effective
    cable chest exercise to train your lower chests, strive the decline cable fly.

    Every exercise permits you to preserve continuous tension on the chest muscles all through
    the motion, which is crucial for exciting these strength positive aspects.
    These benefits make cable workout routines a vital a half of any chest workout
    routine. While it is possible to isolate completely different muscles using
    free weights, cable machines provide a potentially easier various to do that.

    Free weights usually necessitate much more stability and control to achieve isolation because of
    their almost infinite degrees of freedom. With cables, however,
    there is not any “break”, solely steady time underneath pressure.
    The fixed pressure increases the strain in your muscle tissue, leading to quicker fatigue which
    is probably beneficial for exciting muscle progress. When progressing with any
    exercise, cables, or free weights, it’s essential to grasp
    the basics first.
    This variation of the normal bench press challenges your stability and prompts extra muscle fibers,
    leading to higher overall muscle activation and practical energy.
    This train targets the center and higher chest with an inward and upward motion, creating constant
    pressure all through the range of movement.
    This will help to isolate and have interaction the chest muscle
    tissue, particularly the outer and inside areas.
    They provide more flexibility and flexibility in terms of movement and
    angle, and can be safer for the joints because of a pure range of
    movement. Lower chest cable workout routines, like the low to excessive cable chest pull, can be more challenging
    than cable higher chest workout routines because of the angle of the carry.
    Do Not count on to be able to carry the same amount for both
    since you might end up causing harm to your shoulder joint.

    Nevertheless, twisting movements interact stabilising muscles, improve muscle fibre activation, and improve coordination between the chest, shoulders, and arms.
    Analysis means that exercises involving rotational movements improve
    neuromuscular coordination and muscle recruitment (Behm & Sale, 1993).
    Moreover, these movements help mitigate muscle imbalances, which might happen as a result of repetitive linear pressing patterns
    (Hibberd et al., 2016). Don’t get us mistaken, bench press is a particularly efficient method to
    build muscle, however by ignoring other chest workouts, you’re
    leaving lots on the table. The cable bench press on an exercise ball is
    a compound exercise that targets the chest muscular tissues while partaking your core for
    stability.
    As you push your arms inward towards each other,
    the main target shifts to the inside of your pecs to emphasize the middle of your chest.
    The pulley peak of the cables largely is dependent upon the precise exercise you’re performing and the portion of the chest you are targeting.
    Not Like dumbbells or barbells, where there could be certain ‘relaxation’ factors within the
    raise, cables do not let up. This continuous pressure calls for extra from
    your muscular tissues, particularly your pecs, each single inch of the way.

    One of the things I love about cable workouts is that they allow
    for extra controlled actions and versatile angles, making certain you hit each part of
    your pecs.
    Maintain your toes flat on the floor to focus
    the trouble on your chest, and try to arch your again such as you would on a flat bench
    press. Hold the handles at waist peak, pointing downwards, after which pull the cables upwards and ahead until they meet in the course of your
    chest. Many folks use dumbbells for flys, but utilizing a cable machine is far safer
    and could be simpler.
    Cables allow for the best resistance angle, versatility,
    constant rigidity, and isolation ability you should promote optimum muscle growth.

    A cable machine permits you to work your triceps in isolation extra effectively than free-weight alternate options.
    When you employ dumbbells or barbells, you can’t help but deliver different
    muscle groups, such because the deltoids and core,
    into the movement. It has been proven in several studies to be the best exercise at activating
    the chest. And moreover, the exercise you could
    lift the most weight with.
    This lets you goal each space of your chest
    effectively (it’s a giant muscle), stress your muscles in a different way,
    and construct energy by way of all planes of motion.
    Cable workout routines are great for building and strengthening your
    pectoralis major, which is the muscle that makes up nearly all of your chest, in addition to serving to with chest fat
    loss. The cable crossover machine allows for a wide variety
    of chest workouts thanks to its capability to manipulate angles and change attachments.
    That’s why the barbell bench press and mechanical flyes (with their vertical weight stacks)
    rank highest in EMG research for chest activation.
    The single arm bent over row may be even higher on your
    again than an everyday barbell row as a result of this is unilateral the place you
    possibly can focus on the working muscle tissue, one
    side at a time. Then you want to think about incorporating cable workout routines into your routine.
    One should incorporate the cable machine and free weights into their chest-training regimen. There’s
    no reason an individual has to choose between them; they each
    have unique advantages.
    Today, we’re diving deep into the most underrated piece of equipment in your workout arsenal for chest
    exercises – the cable machine. Whereas cables may not be the finest choice for absolute strength features,
    a good cable chest exercise will certainly assist develop a robust chest.
    Especially when used with tried and true workouts like the
    bench press. Very very comparable to the cable standing
    fly, however with a larger vary of motion. This is similar motion as
    the cable bench fly, however unilaterally or only one
    facet at a time.
    This signifies that when performing a cable chest exercise,
    the muscle is under rigidity for an extended time frame, which can be beneficial for muscle progress.
    Incorporating cable chest workouts into your exercise routine may help you obtain a well-rounded chest
    exercise that targets all parts of your chest muscle tissue.
    Remember to make use of proper type and give attention to muscle contraction all through the complete range of motion to maximise the effectiveness of these exercises.
    To maximize the effectiveness of your higher chest cable workouts, concentrate
    on correct kind and controlled movements. Have Interaction your core and maintain a stable physique place throughout every train to focus on the
    upper chest muscle tissue effectively. Dumbbell chest
    workout routines without a bench discuss with exercises targeting the chest muscular tissues that are performed utilizing dumbbells
    without the necessity for a exercise bench. Performing dumbbell
    chest workouts with no bench offers convenience as they can be carried out wherever
    without the necessity for specialised equipment.

    References:

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