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Briefing
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- First Manufactured Chip – Xiaomi built its first system-on-a-chip (SoC), Surge S1, joining Apple and Samsung in making processors for their own phones
- Mid-Range Processor – 64-bit chip octa-core mobile processor has built-in quad core Mali T860 graphics processing unit (GPU), comparable to Qualcomm’s Snapdragon 625 and MediaTek’s P20 and P10
- Secure and Noise Reducing Chip – Has improved security against fraudulent base stations, and eliminates static and background noises
- New Mobile Phone – Launched new version of Xiaomi Mi 5C equipped with new processor
- Integrated Hardware and Software – Developing own chip allows for integration of hardware and software, which gives Xiaomi more control of how both work together
- Profit Increase Potential – Can reduce Xiaomi’s cost and increase profit margin, as processors cost as much as 35% of bill of materials, while accounting for 50% of total components cost for mid-range phones, according to Counterpoint analyst Shobhit Srivastava
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Accelerator
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Business Model and Practices
Business Model
and Practices
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Sector
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Information Technology
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Source
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Original Publication Date
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February 28, 2017
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