On Thursday, Xiaomi Corporation (OTC: XIACF) announced that they would be investing more than RMB 50 Billion (USD 7.18 Billion) over the next five years in various technologies, namely artificial intelligence, 5G internet technologies, and the Internet of Things, according to Reuters.
“We now believe we will invest at least RMB 50 billion over the five years in “5G+AIoT” to double down on our lead in the field. This is to ensure we win in this new smart era,” writes Lei Jun, the technology company’s CEO, in an open letter released to the public on Thursday. “‘5G+AIoT’ represents Xiaomi’s ability to offer services across our comprehensive product line. It gives us the chance to offer unique and pioneering AIoT use cases.”
Jun also took to social media on Thursday and stated that “we need to turn our continuous advantage we have in AIoT and intelligent life into absolute victory in intelligent full scene, and completely cement our king status in the smart era.”
The Company had promised that they will launch at least 10 models of 5G smartphones in 2020 in November of 2019. This investment announcement comes almost a full year after the Company announced that it would invest over 10 Billion yuan on these technologies on January 11, 2019.
This is big news for the Beijing-based smartphone manufacturer, which has been facing intense competition from other Chinese technology companies. Xiaomi’s smartphone market share in China has tumbled from 13% in Q3 of 2018 to 8% in Q3 of 2019. Meanwhile, Xiaomi’s close competitor Huawei has been leading the charge in the Chinese smartphone industry, jumping to a whopping 40% market share in Q3 2019.
The Chinese consumer electronics company’s stock climbed 6.16% to USD 1.465 as of 12:27 PM on Thursday after this announcement.