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Xiaomi announces MIUI 7, partners with Opera to add Max compression technology to Android ROM

Xiaomi Bakes Opera's Data Compression Tech Into Newest Version Of MIUI Android  —  Xiaomi may be best known for its competitively priced smartphones, which have soaked up marketshare in China

TechCrunch Jon Russell

Context & Ripple Effects

Xiaomi's MIUI 7 announcement lands the same day Opera expanded Max to handle streaming video, with Opera Max now able to compress YouTube and Netflix traffic — so the ROM integration arrives just as the compression tech becomes genuinely useful for media-heavy usage. For a phone maker whose pitch is affordable devices sold into markets with expensive, metered mobile data, baking savings into the OS removes an install step entirely.

The deal also marks Opera's shift from consumer downloads to OEM distribution: within three months of this partnership, Opera Max came pre-installed on phones from 14 OEMs, suggesting the Xiaomi deal was the template. The longer arc matters too — MIUI went on to reach 309.6M monthly active users by early 2020 before Xiaomi announced HyperOS to gradually replace MIUI, making these OS-layer service partnerships a chapter in a platform that has since been retired.

First-order effects

  • Xiaomi's users get network-level data compression without downloading anything, directly lowering the effective cost of owning a Xiaomi device on metered connections.
  • Opera gains OS-level distribution through one of the largest Android ROMs outside Google's own, converting a consumer-app business into an embedded-technology deal.

Second-order effects

  • Other handset makers face pressure to match the built-in data-savings feature, and Opera's rapid expansion to pre-installs across 14 OEMs shows competitors signing equivalent deals rather than building their own compression stacks.
  • Compression vendors like Opera move up the value chain from selling apps to licensing infrastructure to OEMs, changing where their pricing power sits.

Third-order effects

  • Android differentiation shifts from hardware specifications to services layered into the ROM, letting budget-focused OEMs compete on total cost of ownership rather than specs alone.
  • The pattern also carries an expiration risk: even a successful custom layer like MIUI, which scaled past 300 million users on the strength of such features, can be replaced wholesale — as Xiaomi's later move to HyperOS showed — leaving embedded partners dependent on a platform they don't control.

The trend: Android OEMs are differentiating through value-added services embedded in custom ROMs, turning compression and utility vendors into platform infrastructure suppliers whose fortunes ride on someone else's OS.