|Xiaomi is considered as one of the best projects implemented in recent years. The main reason why this brand has become popular is related with the results shown by the company. The first phone of Xiaomi has been released back in 2011. And it took about 5 years from this manufacturer to find its place under the sun. What’s more amazing it makes products for all cases of life. Such a diversification requires great management policy as well as incredible efforts. Seems Xiaomi has already proven anything is impossible. But as it often happens with such perspective projects, the company faces too many problems caused by partners. As a result, the further activity of the manufacturer is under danger. Recently, many Chinese smartphone makers including Xiaomi announced prices of their products will be increased by 100 yuan ($14) due to increased purchase cost of components and exchange rate fluctuations. Another case, the Xiaomi Mi 6 has not been launched yet due to shortage of Snapdragon 835 chip. There are myriads of reasons why Xiaomi’s this or that product failed (I mean the Mi 5S). So it turns out Xiaomi is capable of making good products; any of its products come with at least one innovative feature; thanks to a smart management policy it was able to beat many rivals; and so on. But this company is not able to grow due to ‘artificial’ limitations. The Xiaomi Pinecone chip, which is going to launch onFebruary 28, is thought to be the solution of many problems. But there are many aspects we have to take a peek at. Things aren’t always what they seem.Where the Story Starts?In January, 2016 Xiaomi founder and CEO, Lei Jun announced the company is going to focus on chip making in 2016. This requires formation of special departments, mobilization of forces and creating new laboratories. I am not talking about investments required for this project. But the company has had far-reaching plans. As a result, this project should come in with a CPU made by its own.A year later Xiaomi came in with another announcements referring to the official release date of the Xiaomi Pinecone, an own-made processor that should help the company to win the world.Many think the Pinecone Electronics is not owned by Xiaomi. Therefore, this chip maker may cause the same problems for the company like Qualcomm and MediaTek. But the truth is that Pinecone Electronics was set up by Xiaomi with help from chip maker Leadcore back in November 2014. And it’s considered as Xiaomi’s sub-brand. So if the Pinecone succeeds, the smartphone maker will solve problems in the long term.Why Xiaomi Pinecone is So Important? – Missing Link in Chain!In 2016 Huawei, Oppo, Vivo and other Chinese manufacturers have provided good sales numbers thanks to supply chain control. Thus smartphone makers will not compete in terms of lower prices or more advanced business models. The decisive factor will be related with the fact who can return to traditional business logic faster. In this sense, Huawei has outrun Xiaomi. That’s why it could become the third largest smartphone maker behind Apple and Samsung. So we can write down Huawei has started implementing far-reaching plans the way earlier than any other company.Obviously, Huawei is the third due to its own chips. That’s why it can design and release high-end devices not depending on others. For example, while many manufacturers including Xiaomi were suffering because of Snapdragon 820 processor shortage Huawei was making great devices packed with the Huawei Kirin 960 CPU. This doesn’t mean Xiaomi has always been relaying on suppliers. If it was true, we’d never hear about under-glass fingerprint identification that should appear on the Mi 5S, piezoelectric ceramic driver found on the Mi MIX.Getting back to Huawei, this manufacturer released a number of flagships carrying Mate and P identifiers while others were busy of negotiating with suppliers. The same story we can see for the Huawei P10 / Plus. The phones will be unleased at MWC 2017 in a few days, while we have to wait for the Xiaomi Mi 6 for a few more months.Read: Xiaomi Pinecone In-House Chip vs Huawei’s Kirin ChipAs for the next two rivals of Xiaomi, Oppo and Vivo follow another strategy – they pack their phones with both MediaTek and Qualcomm processors to avoid component shortage risks. There was a time when Xiaomi acted in this way too. I am talking about the Xiaomi Mi 3 sporting NVIDIA Tegra 4-PLUS-1. But the all phones from this family came with Snapdragon processor. Thus this company is correlated with Qualcomm. That’s the source of problems.What Problems Can Solve Xiaomi Pinecone?The problems are obvious. That’s why the Xiaomi Pinecone is vital for the company. It will help Xiaomi to get the following three benefits:Optimize the supply chain managementAny manufacturer should launch products to comply with the market rhythm. Thus this shouldn’t be problem in the supply chain management. Currently only Apple, Samsung and Huawei have their own independent chip research and development departments. That’s why they are the leaders of the market and behave according to their goals and dreams, while other manufacturers always look towards Qualcomm and MediaTek. By the way, such a diversification has formed the smartphone launch schedules – Qualcomm launches its creations in spring, while Huawei releases the next-gen Kirin processors in fall. Therefore, there is a six-month delay for manufacturers. It also affects consumption – some people buy smartphones in spring / summer, and the rest of buyers get their hands on new devices in fall / winter.Independence in innovationsWe all know Apple pack the iPhone 4 with its own-made A series chip. Samsung had been the chip supplier for the Cupertino based company. Moreover, the iPhone 4 was the device helping Apple to sweep the world. This happened because Apple started implementing what Steve Jobs had been always talking about – ‘We want to sell you only iOS. iOS had been made for the iPhone only, and we don’t want to sell you anything else.’The same thing we can see at Huawei – starting from the HiSilicon Kirin 950 Huawei focused on making better software and optimizing hardware. In other words. Xiaomi needs its own chip to avoid the cases when it will rely on suppliers and it can be more innovative.Reduce costs / pricingPurchasing components from other manufacturers that are based in different countries always assume dependence on exchange rate. This is crucial for thousand-yuan smartphones such as theXiaomi Redmi Note 4X. For example, the Snapdragon 820 costs 62 dollars. Plus, there are some patent fees. All these factors affect the final pricing. Xiaomi just needs this chip to avoid these cases. As Chief Executive Officer of Huawei Consumer Business Group, Yu Chengdong said ‘most of Chinese smartphone makers will disappear in coming 3-5 years. We have to be more enduring to remain afloat in a long-term.’Xiaomi Pinecone Architecture and AdvantagesManufacturers decided to integrate significant portions of an electronic system into a single chip. Therefore, the term of SoC (System-on-a-Chip) means a single chip including a lot of different functions. This solves many problems, but it is a real headache for smartphone makers. Currently Qualcomm is overloaded. That’s why many manufacturers like Xiaomi suffer of chips shortage.On the other hand, this situation is handy for top smartphone makers such as Samsung and Apple. I mean they have no reason to worry about the rivals as well as they can earn more money by selling their own chips to them. Say, the Meizu Pro 6 Plus sports Samsung’s Exynos 8890. But it doesn’t support the whole network. In this sense, the Huawei Haisi is the first Chinese chip designed at the same level with Qualcomm’s creations. I mean it supports whole network.Read MediaTek Helio X27 vs Qualcomm Snapdragon 820 to learn more about CPUs.As for Taiwanese MediaTek, it’s behind Qualcomm and Huawei for sure. But this chip maker will always have its place under the sun due to innovative activity – it offers the first deca-core processor in face of the Helio X30.Read: Qualcomm Snapdragon 835 vs Mediatek Helio X30According to AnTuTu data, Qualcomm occupies 57.41% of the market, while Huawei Haisi takes 5.73%. So when the Xiaomi Pinecone is launched no one knows how these number will change. How would that be for you guys? – If the Xiaomi Pinecone take off all the question referring to networks, it will beat all rivals.As for now, we know there will be two versions of the Pinecone chip. The Xiaomi Pinecone V670 is designed for the low-end / mid-range market, while the V970 comes for high-end models. The V670 comes with eight-cores at A53 architecture clocked at 2.1GHz 1.3GHz and using ARM Mali-T860 MP2 GPU. Thus it is going to compete with theSnapdragon 808 / 625. The latest leaks showed the V670 chip had scored 762 points and 3399 points at GeekBench 4 for single-core and multi-core tests, respectively. As for the higher variant, the Xiaomi Pinecone V970 is based on ARM A73 A53CPU architecture (Mali G71 GPU). And it will be better than the Huawei Kirin 960.The Bottom LineXiaomi has released a couple of trailers on the eve of the upcoming event, where it will unleash its own-made processor. The most powerful brain on the planet, world-class memory master ‘Wang Feng’ is the main player in the first video. He carried out an incredible memory challenge. The second trailer has become popular thanks to Jia Liping, the first person reverted two Rubik’s Cubes within 1minute and 1second with eyes closed in the water. Thus Xiaomi wants to say its processors will be fast as well as do many tasks per time period. Of course, any chip maker needs more shipments to lower the cost per CPU, but who says Xiaomi can’t achieve this.|
In order to fulfill the basic functions of our service, the user hereby agrees to allow Xiaomi to collect, process and use personal information which shall include but not be limited to written threads, pictures, comments, replies in the Mi Community, and relevant data types listed in Xiaomi's Private Policy. By selecting "Agree", you agree to Xiaomi's Private Policy and Content Policy .