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Apple starts into the 5G age – Xiaomi attacks with cheap offers

Apple has presented its new iPhone models. As expected, Apple is now entering the 5G era, but is using the previous models 4 and 5 for the design. The Chinese competitor Xiaomi is trying to convince customers with several inexpensive 5G phones.

The most important things about Apple and Xiaomi in advance:

  • 5G iPhone is also said to drive the business of other Apple products
  • Xiaomi is growing into an electronics giant

The new iPhone 12 is not rounded, but square. Technically, it should achieve download speeds of up to 3.5 gigabits per second and be more resistant to falls. This is ensured by the display glass thanks to nanotechnology. A new lens system is supposed to improve the quality of photos in poor lighting conditions – in addition, the images are improved by software, as is now customary.

The iPhone is by far the most important product for Apple. In the most recent quarter, the US group generated around 44 percent of its sales with the Apple smartphone. Experience shows that in the fourth calendar quarter the share of sales made by the iPhone is even higher. Plus, the iPhone powers business with the entire Apple ecosystem, which includes a cloud service, the Apple Watch, headphones, speakers, and other products.

But Apple is not at the forefront of 5G supporters. Competitors such as Samsung, Huawei, Motorola and OnePlus had launched the first 5G smartphones in some cases more than a year ago. The telecommunications industry hopes that the addition of 5G modems to the iPhone lineup could give a boost to the wider use of the technology by consumers.

Products on Apple

The Chinese company Xiaomi, known as a cell phone manufacturer, is developing into a new electronics giant with TVs, robotic vacuum cleaners and drones. The Chinese are increasing their smartphones in particular. Xiaomi would like to have at least ten 5G smartphones on the market by the end of the year and score points with low prices. While Apple and Samsung sometimes charge 1,000 euros for their devices, Xiaomi offers its Poco models well below 500 euros.

Another lucrative business for the Chinese is the sale of televisions. India is currently considered the fastest growing country for Xiaomi. The Mi televisions from Xiaomi are particularly popular there. Other offers such as online games, the Youpin e-commerce platform, FinTech services and video subscription services are provided on the smart TVs. Since entering the market two years ago, the company has now sold five million Mi-TVs there and achieved a market share of 22 percent in India.

Xiaomi is still lagging behind Apple in terms of profitability, but it is growing faster and expanding its overall margins. Xiaomi increased sales by 13.6 percent and gross profits by 44.9 percent in the past quarter. Internet services grew by 38.6 percent and even outperformed the hardware segment.

Products on Xiaomi Corp.

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Source: HSBC

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