Xiaomi launches $1,600 Samsung phone challenger as it rides 300% stock rally to record high

BARCELONA — Xiaomi launched its latest flagship smartphone on Sunday continuing its push into higher-end devices as it seeks to challenge market leader Samsung.

The Xiaomi 15 and Xiaomi 15 Ultra are the most recent pair of smartphones from the Chinese technology giant sporting the latest chips and boosted cameras. They were unveiled at the Mobile World Congress in Barcelona.

The Xiaomi 15 starts at 999 euros ($1,047) and the Xiaomi 15 Ultra starts at 1,499 euros ($1,571).

Both devices are powered by Qualcomm’s Snapdragon 8 Elite Mobile Platform, one of the latest processors. The 15 Ultra model also comes with a higher spec camera and bigger display.

“Xiaomi has been hugely successful of building its brand with affordable technology and but now it’s moving up the value chain as it moves more into premium devices and that’s well-suited to the European market where we see an affluent audience,” Ben Wood, chief analyst at CCS Insight, told CNBC.

In 2024, Xiaomi’s global smartphone shipments grew 15.4% year-on-year, outpacing rivals including Samsung and Apple, according to the International Data Corporation. The company’s worldwide market share rose to 13.6% from 12.5% in 2023.

Xiaomi started up in 2010 selling low-to-mid price smartphones at very cut-throat prices. Since then it has expanded overseas, placing a big emphasis on its European foothold. Xiaomi has also built a portfolio of connected devices from TVs to smartwatches.

Last year, the business jumped into the electric vehicle space with the SU7, as it looks to diversify beyond consumer electronics. It even brought the car to the Mobile World Congress in 2024, displaying the vehicle at the company’s large booth and creating a buzz.

Francisco Jeronimo, vice president for data and analytics at IDC, said the EV has given a boost to Xiaomi’s brand.

“They are using the car as leverage to build on their brand which I think is a clever idea,” Jeronimo said.

“They will grab a lot of attention with the car even if it’s not going to be available in Europe, but it’s that kind of innovation. And consumers understand that a brand that can build a car can also continue doing very good phones.”

A recent recovery in the smartphone business, combined with the success of the electric vehicle so far, has helped fuel a nearly 300% rise in Xiaomi’s stock in the last 12 months.

Xiaomi’s shares, which are listed in a Hong Kong, hit a record high this week. The firm is hoping to continue that momentum with the latest smartphones and the launch of the SU7 Ultra, a high-performance version of its electric car that was launched on Thursday.

Still, the company is facing a big challenge in the smartphone space at trying to eat continued share away from Samsung, especially with other Chinese brands like Oppo on its heels.

“The problem is the premium space is now unbelievably crowded, and although all Android phone makers aspire to take share from Apple, the reality is if you’re going to grow in Android, you need to take it from another Android player. So that means for Xiaomi, they need to be eroding Samsung’s share,” CCS Insight’s Wood said.

“But unfortunately, you’ve got 2 other big Chinese players in Oppo and Honor who are very very hungry to build share.”