Dialogue with Dreame Mobile Number One: Why is the flagship model priced 20% higher than Apple?

Dreame plans to sell mass-market phones at prices higher than Apple.

On May 25th, Liu Yang, Global Head of Dreame AURORA phones, revealed for the first time the pricing logic of Dreame AURORA phones in a conversation with Wallstreet News. According to his plan, Dreame's future flagship AURORA phone series will take Apple as its benchmark, with the price of comparable products expected to reach 1.2 times that of Apple.

A newcomer aiming to challenge Apple, launching at a price higher than Apple—where does Dreame's confidence come from?

Liu Yang's original words: "The supply chain built for Dreame AURORA phones overlaps highly with Apple, and the hardware is equally matched; Dreame AURORA has developed its own AIOS + full-home ecosystem, and it looks better designed than Apple."

"A phone is like a piece of clothing. If it looks good, it can inherently sell for more." So Liu Yang is not afraid that this pricing will cause a cold debut.

This pricing logic continues Dreame's previous strategy in the robot vacuum market. "When we made robot vacuums, we were already 20% or even more expensive than others, because I had something they didn't," Liu Yang said.

Liu Yang revealed that the goal for the debut of Dreame AURORA phones is to establish a high-end brand image, with sales being secondary. The goal in the next 2–3 years is 1 million units globally.

In the phone industry, this isn't a high target, but founder Yu Hao's goal for Dreame AURORA is to “claim a third of the worldwide share with Apple and Samsung, and ultimately be number one.”

Looking only at the Chinese market, Omdia data shows that in 2025, the total shipment of smartphones in mainland China will reach 282.3 million, with the top five brands each exceeding 42 million units. Even Meizu, which has now been forced to exit the phone industry, would have million-level sales in 2025.

Liu Yang presented a different set of evaluation criteria.

Liu Yang believes that making phones now must break the tradition of measuring by sales volume and instead calculate profit. If rankings are based on profit, what would the phone leaderboard look like? "My 1 million units are all profitable, there are few companies like this overseas, and businesses that grow revenue without growing profit are not healthy."

In terms of sales scale, Dreame has shown unexpectedly conservative ambitions, proposing to expand sales only under the premise of ensuring ROI.

Since Dreame AURORA phone was unveiled, it has always positioned itself as high-end. It has been clarified that it will officially be launched in Q4, but which product line will be released then depends on the market, according to Liu Yang.

Wallstreet News has learned that Dreame AURORA plans three product lines: the first is a high-luxury emotion line targeting high-net-worth users, emphasizing identity and emotional value; the second is a modular product line, positioned as a tech pioneer; the third is the flagship product line, which is also a vital carrier for Dreame's AIOS implementation.

Liu Yang points out that the first two product lines are mainly for building brand awareness, while the flagship product line is responsible for sales. He also reveals that AIOS will connect to external large models, with overseas and domestic options under selection.

Whether this approach works in an intensely competitive and innovation-stalled phone industry remains to be tested by the market.

In recent years, the phone market has experienced price wars, supply chain fluctuations, and innovation bottlenecks. In fierce industry competition, even top manufacturers must focus on maintaining their market share.

As Dreame brings the red ocean product of smartphones into its ecosystem and sets targets to benchmark Apple and Samsung, skepticism abounds.

Liu Yang believes: "Many people are leaving the industry this year, mainly because memory costs have skyrocketed; low-end phones are thoroughly unprofitable. Where there is crisis, there is opportunity. When others can't compete anymore, it's the best time for us to break through in the high-end market."

Yu Hao had the idea of getting into the phone business early on, beginning to assemble the phone business team in 2024. In August 2025, Liu Yang, then in charge of Dreame's robot vacuum product R&D, volunteered to lead the phone business. Reportedly, Liu Yang also previously led phone R&D and delivery at another phone manufacturer.

He repeatedly pointed out that Apple has long taken the majority of global smartphone industry profits. Dreame entering the phone market is not to participate in domestic brand competition, but to reclaim profit margins from the Apple-dominated global high-end market.

Liu Yang is full of confidence in Dreame AURORA’s capture of the high-end phone market, repeatedly emphasizing the "pulling force of Dreame's brand," meaning the high-end brand recognition established overseas; as well as Dreame’s technology reuse and his deep knowledge of the phone supply chain, which has already been set up.

Compared to cleaning appliances, the phone industry is even more cut-throat.

To gain more room for survival, Chinese phone makers have frequently launched attacks on the high-end market in recent years. To this day, the outside world generally considers Huawei as the only brand that can compete with Apple at the high-end.

As the global smartphone market battle enters its latter stage, the overall market has shifted from a growth market to a stock market.

The industry is highly concentrated and fiercely competitive. IDC data shows that in Q1 2026, Samsung, Apple, Xiaomi, OPPO, and vivo—the top five phone brands—occupy over 70% of the global market share. In the Chinese market, Huawei, Apple, OPPO, vivo, and Honor take over 80%.

As shipments fall globally, the competition for the high-end market among major phone makers intensifies in response to cost pressures. In this context, ASUS and Meizu will exit the phone market in 2026, and many brands have chosen strategic shrinkage, leaving even less room for small and medium phone makers to survive.

As a new player, whether Dreame AURORA's focus on AIOS will become a differentiating advantage, whether its high-end brand strength can transfer to the phone business, and whether its complex supply chain can be efficiently integrated and controlled, remain questions that only time will answer.

The following is the full transcript (edited) of the conversation between Wallstreet News and Liu Yang, Global Head of Dreame AURORA Phone:

01 Where does the confidence to enter the market come from?

Wallstreet News: The phone industry is highly competitive, with many manufacturers exiting. Why is Dreame entering now?

Liu Yang: Where there is crisis, there is opportunity. The core issue now is the skyrocketing memory costs—8+256 memory costs $181, so mid- and low-end phones are unprofitable; the supply chain works for memory manufacturers, so we must make high-end phones. Dreame has strong international high-end brand pull, high-end channel advantages in business districts with GUCCI/Prada stores, plus smartphones are the core entry to the whole-home AI ecosystem—we have no choice but to do it.

Wallstreet News: When did Yu Hao officially decide to do phones? Were there any internal or external obstacles when building the team?

Liu Yang: The boss had the idea many years ago, four or five years ago or even earlier. At that time, the brand pull wasn’t enough, and the channel and supply chain advantages were not strong enough.

The real start of team assembly was in 2024, Q3 or Q4. There were some detours at first—like we now encourage employees to post videos: you might post 75, but you don’t know which will go viral.

Dreame's phone business initially tried to hire so-called “amazing people” from outside to run things, which could cause problems or incompatibility, until last August I took over. There might have been trial-and-error, but the cost was okay—mostly manpower.

Wallstreet News: I heard you volunteered to take charge of the phone business, why?

Liu Yang: We've made robot vacuums world-leading, and that's Dreame's most profitable business. Phones are a bigger and harder market, and I want to take on a tougher challenge.

Wallstreet News: When deciding to take on the phone business, what points made you hesitate or need persuasion?

Liu Yang: I didn't have much hesitation. Mainly, I saw that 80% of industry profits are with Apple, so the biggest goal is not to compete with domestic phone brands, but to take more profits and share from Apple. It’s not like no one has succeeded before—Huawei did.

My confidence in Dreame making phones well stems firstly from our brand pull, which I've already validated with the X50 (a Dreame robot vacuum that’s a blockbuster in Europe costing tens of thousands of RMB); secondly, I am quite familiar with the supply chain—even every A-share-listed phone supply chain’s financials and stock trends. Supply chain integration is a key skill in making phones, and I know their pain points and how to break through; third, we have much reusable technology—imaging, communication, etc.—and I’ve made phones before.

Wallstreet News: What challenges still need to be overcome for Dreame to make phones well?

Liu Yang: I think I have the least to overcome—the ones who need to overcome more are other phone makers, as their lives are tough. Mine isn't tough; I’m not anxious.

For me, every step I take—whether it’s brand, supply chain or market cooperation—as long as there’s a 0–1 breakthrough, I’m winning.

02 How to Challenge Apple

Wallstreet News: Has the supply chain for Dreame AURORA phones been fully set up?

Liu Yang: Yes, because 90% of the supply chain is in China.

Wallstreet News: How were the three product lines for Dreame AURORA phones decided, and what are their strategic positions?

Liu Yang: High-luxury emotion line: serves Prada/Chanel users, focusing on identity, customization, emotional value, raising brand premium;

Modular tech line: can carry modules like imaging, satellite, charging, agents, for scenarios like cycling/climbing, with detachable zoom lens, solving safety/shooting issues, positioning as tech pioneer;

Flagship volume line: priced at Apple peer level ×1.2, equipped with proprietary AIOS, also integrates Dreame ecosystem’s A2A (Agent to Agent) capability.

However, the high-luxury and modular lines are not for volume; they’re for brand awareness. The flagship product line is our main volume driver.

Wallstreet News: Will all three lines be launched together in Q4?

Liu Yang: Yes, there will be products in Q4, but which lines will launch depends on R&D progress and market feedback, and also memory prices at the time. If memory doubled again, we couldn’t bear it.

Market feedback is mainly channel orders—production is based on sales, channels pay deposit before manufacturing. If ROI calculated turns negative, we may slow down, but our goal is to have products launched in Q4.

Wallstreet News: Why price the flagship higher than Apple by 20%? Are you worried this pricing will make the market cold?

Liu Yang: First, our supply chain overlaps highly with Apple—so in hardware there’s no difference; Dreame AURORA has its own AIOS + full-home ecosystem, and looks better. Not worried about a cold market—Dreame always prices higher than rivals and still sells well.

Wallstreet News: What product adjustments are being made before the initial launch?

Liu Yang: We need to make AIOS better as soon as possible, it’s proceeding normally; supply chain isn't a problem—after integration, it’s all about selection and prepping materials.

Wallstreet News: What’s the idea behind Dreame AURORA’s AIOS development?

Liu Yang: Developed from Android base, core is A2A, devices don’t passively wait for commands but make judgments and serve proactively. For example, robot vacuums use GPS, weather, calendar to decide cleaning strategy; air conditioner adjusts temperature, mode, airflow based on environment and user habit; phones use front camera to sense outfit/emotion and auto-change wallpaper, push caring services (like sending flowers, music recommendations).

Wallstreet News: What’s Dreame AURORA’s view of AI Phones?

Liu Yang: AI phones should be like autonomous driving, helping users with 60–70% of active tasks, acting as a smart home manager, focusing on emotional value and proactive service, unlike traditional AI voice-interaction phones.

Wallstreet News: Will Dreame AURORA make foldable phones?

Liu Yang: Might consider it, but it’s not necessarily right. Foldables have low adoption, high repair rates, high after-sales costs abroad—currently not a priority.

Wallstreet News: From "benchmarking Huawei/Xiaomi high-end" to "sharing the global market with Apple/Samsung, ultimately number one"—is this shift due to market judgment or capabilities?

Liu Yang: First, Huawei faces challenges in overseas markets, an objective factor. 80% of profits are with Apple—so benchmarking Huawei isn’t meaningful; need to compare with Apple. Dreame AURORA will not focus on Chinese brands, directly benchmarking Apple and Samsung, with an emphasis on profit.

Wallstreet News: Does this goal put pressure on you?

Liu Yang: No pressure, this is how it should be. In sports, people remember Olympic champions—so you should challenge the phone world’s Olympic champion, not just be local number one. Olympic champion is the standard for China and the world.

03 Pursuing ROI is Still the Goal

Wallstreet News: Is there an internal target for defining launch success? What’s the criteria: sales, profits, high-end brand establishment, or something else?

Liu Yang: For us, any extra sales on launch is success, because at 0–1, the most important thing is brand awareness. That counts as success.

That success can't be measured by traditional volume statistics; it’s meaningless, as some brands even surpass Apple on volume. This method is wrong; should measure by profits, and then the data outcome is undisputed.

We care most now about establishing the high-end brand, with positive ROI as the premise. Future products will focus on volume.

Dreame AURORA is a very cautious company. We won’t recklessly spend on marketing—no point. Everything must be converted from a language question into a math one; only when the numbers work do we do it.

Recently, the company’s encouraging employees to post short videos, a sign we’re a company that calculates—suppose an employee posts 75 TikTok videos a day, 20,000 employees total would post 1.5 million videos a day, 45 million a month, over 540 million a year. If each gets 10 views, that’s at least 5.4 billion exposures. Even if each posts only 5 daily, the exposure is still considerable.

With the logic that exposure brings conversion, people will see Dreame AURORA’s brand and its products.

Normally, such exposure would cost a lot in traffic investment, but now we can save that and spend on employee perks or subsidies for supply chain and channel partners.

Wallstreet News: What medium-term and short-term development goals has Dreame AURORA set?

Liu Yang: Short-term—from last August to this August, boost brand awareness, launch products, and test the market's response. That’s my target.

In the next 1–3 years, gradually roll out products to get market volume. In years 2 and 3, push quickly to reach 1 million units worldwide.

Importantly, all that volume is only pushed if profitable; if it’s not profitable, I won’t push.

Long-term, we just want to share profits with Apple. This path is certainly tough; whether it’s achievable in 5–10 years is unknown, but we dare to do it.

Wallstreet News: Is 1 million units enough for Dreame AURORA phones to gain a foothold?

Liu Yang: Definitely need to change the logic from volume to profit ranking. My 1 million units are all profitable; there aren’t many companies like this overseas.

Wallstreet News: What label do you want Dreame AURORA phones to have in users’ minds?

Liu Yang: A global innovation brand—a name card for China's real economy overseas.

Wallstreet News: You are fully in charge of the phone business. Are there areas or decisions where you still need to consult Yu Hao?

Liu Yang: We don’t need much discussion. He doesn’t have time for reports—we have so many businesses, if everyone reported, it would take too much time.

After the phone business was set up, his internal goal is what everyone saw: “share the global market with Apple and Samsung.” Other than that, he lets me do things and break down plans for execution.

Wallstreet News: What is Dreame AURORA phone’s R&D investment? Funding sources?

Liu Yang: At least 10 billion yuan will be continuously invested in R&D. Progress depends on ROI verification—not burning money blindly; funding sources are diversified, including external financing, and both domestic and overseas capital contacts.

Wallstreet News: What’s Dreame AURORA phone’s heaviest investment—chip, system, imaging, AI, channel, or brand?

Liu Yang: Building up the brand doesn’t cost much—we don’t have to start from zero thanks to Dreame’s brand pull. Most resources go into AIOS, mainly manpower and some algorithm costs.

Wallstreet News: About how many people are in Dreame AURORA phone team; what are the backgrounds of core members?

Liu Yang: About 500 people total; we are still small and agile. If direction is wrong, we can shift quickly. Of these, 70% are in R&D; AIOS R&D is nearly 60% of the R&D team; core AI talent must come from Huawei, Apple, Samsung, or top AI large-model firms.

Wallstreet News: In recent years, domestic phone brands have aimed for high-end, but many see only Huawei as comparable to Apple. What makes Dreame AURORA believe it can achieve what others couldn't?

Liu Yang: Brands are believed because they are seen. Dreame has already established its high-end brand.

Future products follow—the path of seeing is believing. Other manufacturers started with mass-market (wide road), aiming upwards from low to high—very tough; Dreame AURORA starts narrow (high-end focus), brand, channel, and top-of-mind already proven overseas. Going from high to low is smoother.

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