Chinese Smartphone Giants, Huawei and Xiaomi, signal potential for Apple’s entry into the EV Market

Huawei and Xiaomi, major players in the Chinese smartphone industry, are making strides in the competitive Chinese electric vehicle (EV) market, potentially influencing Apple to enter the global EV race. Huawei’s debut Aito M7 SUV garnered 80,000 orders within the initial 50 days, while Xiaomi, having developed a car operating system, anticipates its EV debut in the first half of the coming year.

However, their strategies differ from traditional EV manufacturers like BYD and Tesla. Huawei, aiming to act as a developer and supplier of specialised automotive technologies, collaborates with multiple Chinese car makers. Xiaomi, known for its diverse product range, is expected to follow a similar strategy, initially partnering with BAIC for car production.

Rather than emulating established car manufacturers, Apple may draw inspiration from its Chinese smartphone counterparts. Notably, Hyundai’s 2021 acknowledgment of collaboration rumors with Apple on a vehicle underscores the potential for an Apple EV launch, which Bloomberg News suggests could take at least five years.

Huawei’s focus on supplying specialised automotive technologies, such as operating systems and assisted-driving features, aligns with its desire to be less of a car maker and more of a technology developer. Xiaomi’s approach, often involving partnerships for product development, may extend to its EVs initially being built by BAIC.

Consumers and partners evaluating these entrants into the EV market will question what unique elements Huawei and Xiaomi bring, given their reliance on rebadged models from traditional car manufacturers compared to the in-house development and production of vehicles by established players like BYD and Tesla.

In the electric vehicle era, where features like range and reliability take precedence, the success of Huawei and Xiaomi hinges on whether drivers perceive cars as traditional products requiring a lengthy history and heritage in safety and structural integrity or as modern, technology-driven entities. While safety remains a given due to stringent regulations, consumer interest is increasingly centered around features like large cockpit screens, wireless phone charging, and connectivity.

Despite their potential, Huawei and Xiaomi must navigate challenges, including the necessity of avoiding missed timelines akin to those faced by Tesla, which impact reputation. Success or failure for these smartphone giants-turned-EV contenders rests significantly on their partnerships with third-party car manufacturers.

If successful, their achievements could encourage Apple to enter the EV market, while failure may still provide Apple with confidence in leveraging its supply chain management and relations with contract manufacturers.