Chinese smartphone maker Xiaomi will invest USD 7.2 billion on 5G, artificial intelligence (AI), and Internet of Things (IoT) over the next five years.
Xiaomi Chief Executive Lei Jun made the announcement in a new year's letter to his employees on WeChat.
On the "5G + AIoT" battlefield, we will invest at least 50 billion yuan in the next 5 years!We must transform the sustainable advantages of AIoT and intelligent life into the absolute victory of the intelligent full scene and thoroughly establish the king position in the intelligent era, Lei Jun said in the letter.
The Xiaomi founder also recounted the state of play of the mobile phone industry.
The global mobile communications industry is at a critical moment in the transition from 4G to 5G. We have adopted a stable business strategy, continued to consolidate the foundation of capabilities such as quality, innovation, and delivery, and carried out a series of major initiatives such as brands, product lines, organizational structures, and management systems Adjustments have laid a solid foundation for future development, the letter said.
5G is not just the network performance of mobile phones, AIoT is not just AI technology or IoT platform. The platform and full-field service capabilities are the "eyes" of Xiaomi's Internet Gene in the new era, and the key to truly bringing a smart technology to our users. At the beginning of last year, we proposed All in AIoT, and invested 10 billion in 5 years. After this year's practice, we have fully verified the feasibility, correctness and necessity of strategic investment in the strategic direction, the letter further said.
Xiaomi is facing stiff competition from other Chinese Android-makers, especially Huawei. In the third quarter of 2019, Xiaomi's smartphone shipment figures slumped 30.5% year on year in China while its global shipments also declined by 3.3%, according to IDC research notes.