At Xiaomi's autumn new product launch, the pricing strategies for its smartphone and automotive segments diverged sharply, underscoring the company's struggle for survival amidst soaring costs. The smartphone division witnessed a downturn in sales volume, yet an uptick in average selling prices, accompanied by slimmer gross margins and a diminished cost-performance edge. In a bid to reverse this trend, Xiaomi unveiled the Xiaomi 18 Fold foldable smartphone, priced at 10,999 yuan, as a bold foray into the premium market segment. Backed by a staggering 105.5 billion yuan investment in R&D over the past five years, with a particular focus on chip development, Xiaomi is determined to reclaim its pricing clout. However, it faces stiff competition from industry giants Huawei and Apple.

On the automotive front, Xiaomi opted for an aggressive pricing strategy to capture market share, banking on the burgeoning demand for spacious family SUVs. The clash in pricing approaches between its smartphone and automotive ventures reveals deeper-seated challenges within Xiaomi's business model. To overcome these hurdles, Xiaomi has earmarked over 200 billion yuan for R&D investment in the next five years, aiming to achieve significant breakthroughs.

Both new offerings garnered over 10,000 pre-orders within a mere four minutes, serving as a litmus test for Xiaomi's brand recognition in the premium market, as well as its scale advantages in the mid-to-low-end segment. As Xiaomi navigates this complex landscape, it must re-evaluate the underlying logic of consumer acceptance and adapt its strategies accordingly.