Xiaomi smart home first step: intelligent module + control center + cloud service

In a recent speech, Dong Mingzhu, chairman of Gree, criticized Xiaomi's efforts in the mobile phone market, calling it just "screaming" and suggesting that Xiaomi is still in the early stage of imitation. Meanwhile, Lei Jun, CEO of Xiaomi, has taken the first step in following in Gree’s footsteps. At the launch event for Xiaomi Note, Lei Jun introduced Xiaomi’s concept of a "smart machine" within its smart home ecosystem, which includes an intelligent module, a central control unit, and cloud services. Xiaomi Note, priced at 2,299 yuan, broke from the company's traditional naming convention by using numbers instead of the familiar "Xiaomei" (red rice) branding. It also surpassed the pricing strategy of Xiaomi’s previous flagship model, the Mi 4, which was priced at 1,999 yuan. The device was positioned as a direct competitor to Apple’s iPhone 6 Plus, with features such as a larger screen, lighter design, dual-SIM support, and longer battery life. The product emphasized Xiaomi’s "king of cost" positioning, focusing on value for money. To test the high-end market, Xiaomi introduced a premium version of the Note, priced at 3,299 yuan, offering upgraded hardware components. Analysts believe this move marks Xiaomi’s attempt to challenge not only Apple but also Samsung and other high-end Android brands. According to Lei Jun, Xiaomi aims to become the world’s top-selling smartphone brand this year. However, what truly captured attention was Lei Jun’s vision for the ecosystem. He mentioned that Xiaomi’s earlier strategies had prompted Dong Mingzhu to make strong remarks, highlighting the company’s approach to building a smart home network. His idea is to connect all smart devices through a mobile phone as the central hub. According to Lei Jun, smart devices face three main challenges: complicated mobile connections, the need for separate apps for each device, and heavy investment in cloud services. To address these issues, Xiaomi proposes the "Intelligent Module + Control Center + Cloud Service" model. Specifically, Xiaomi has developed a universal smart module, sold to partners at material cost, allowing them to integrate smart features into their products. The "Mi Home App" acts as a unified control center, streamlining device connections. Even the lock screen in MIUI now includes a centralized control interface. Additionally, Xiaomi has built a universal cloud service, collaborating with Jinshan Cloud for basic services and investing in Century Internet for infrastructure. Previously, Xiaomi had launched various smart products like the air purifier, fitness band, HD camera, and blood pressure monitor, but the integration between them wasn’t clearly explained. Now, Lei Jun revealed that Xiaomi has invested in 25 ecosystem companies, emphasizing an open, non-exclusive collaboration model. As he put it, “Cooperation means engaging the enemy. We have few enemies and many friends.” In addition, Xiaomi launched two new accessories: the "peripheral headset" at 499 yuan and the "Mi Box Mini," a compact version of the Mi Box, priced at 199 yuan. These additions further expand Xiaomi’s reach in the smart home and entertainment markets.

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