Blogger Xiaomi’s research and development efficiency is far higher than Huawei’s, with research and development expenses less than 10% of Huawei’s

Xiaomi's research and development efficiency is much higher than Huawei's, spending less than 10% on research and development expenses

【Phoneauto News】Recently, some digital bloggers have expressed that Xiaomi’s research and development efficiency is much higher than Huawei’s. Both companies are making a full-scale attack in the areas of operating systems, chips, and automobiles. Xiaomi’s research and development expenses are less than 10% of Huawei’s, which means its efficiency is 10 times that of Huawei. He said that Huawei’s research and development is like throwing pepper, the research and development power is dispersed, while Xiaomi is very focused, making a desperate attempt.

However, the difficulty and depth of technology conquered by the two companies may be different. Even if Xiaomi’s research and development expenses are less than 10% of Huawei’s and its efficiency is 10 times that of Huawei, we cannot conclude that Xiaomi’s research and development capabilities are stronger than Huawei’s. According to the 2022 domestic invention patent authorization ranking, Huawei’s invention patent authorization volume reached 5,805, ranking first, but Xiaomi did not appear in the top ten.

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According to Huawei’s disclosed 2023 interim report on August 30, Huawei continued to invest in research and development in the first half of the year, with research and development expenses reaching 82.604 billion yuan, far exceeding the net profit of 46.523 billion yuan, a year-on-year increase of 4.4%, compared to 79.063 billion yuan in the same period last year.

According to Xiaomi’s second-quarter report for the 2023 fiscal year, Xiaomi’s research and development expenses increased by 19.4% in the first half of the year. Among them, research and development expenses in the second quarter increased by 21% to 4.6 billion yuan compared to the same period last year, and research and development personnel accounted for 52%. Lei Jun also posted on Weibo, stating that Xiaomi’s investment in innovative businesses such as smart electric cars in the second quarter reached 1.4 billion yuan. Xiaomi Group plans to invest more than 100 billion yuan in research and development over the five years from 2022 to 2026, which is basically equivalent to Huawei’s six-month research and development expenses.

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