With the release of the 14 series earlier this year, Xiaomi is now prepared to enter a pricing range that it hasn’t before ventured into. Anuj Sharma, CMO of Xiaomi India, said that the company is getting ready to launch a smartphone that would cost about Rs. 50,000 in an interview with Gadgets 360. This new Xiaomi smartphone will sit in between the flagship Xiaomi 14 at Rs. 69,999 and the Redmi Note 13 Pro+ 5G, which starts at Rs. 30,999 (8+256GB) and goes all the way up to Rs. 34,999 (12+512GB).
“I don’t think there is anyone who does a great Rs. 50,000 smartphone. And this is where we actually wanted to do the whole Xiaomi thing that we normally do and see if we can bring in a device that does justice,” Sharma told Gadgets 360.
Sharma continued, saying that the forthcoming Xiaomi smartphone would be a great all-arounder without providing any other information.
“In the luxury class, Rs. 50,000 is a significant price point when you approach a middle-of-the-road pricing range; this is similar to Rs. 9,999 in the economic segment. India’s perception of a product priced at Rs. 9,999 and one priced at Rs. 10,999 differed greatly when this online phenomenon first began in 2014–2015. Similarly, spending more over Rs. 50,000 or remaining under Rs. 50,000 profoundly alters the way that consumers think. The Rs. 50,000 smartphone sector has been overlooked over time, Sharma said, explaining why most smartphone companies have recently lost out on this market.
There aren’t many players in the Rs. 50,000 pricing range right now. One company that targets people that are performance-oriented is iQOO. Primarily, OnePlus has been performing admirably in this market, capitalizing on the popularity of the 11R and 12R models, which both included modest hardware improvements and hardly represented revolutionary products at this pricing point. Subsequently, Apple and Samsung employ somewhat dissimilar strategies. For those looking for a smaller smartphone, Apple offers the iPhone SE. Alternatively, customers can upgrade to the iPhone 13 at a reduced cost on major online retailers. With the debut of the Galaxy A55 at Rs. 45,000, Samsung has increased the price of the basic S24 this year. Xiaomi is attempting to take advantage of the obvious gap in the smartphone industry.
Xiaomi in 2024
Xiaomi has grown significantly this year and is a major participant in the smartphone industry. The Redmi Note and Xiaomi 14 series debuts were favorably welcomed, according to analyst reports. According to the most recent IDC research, Xiaomi is the market leader for smartphones under $100. This company’s strong momentum has continued from 2023, after a difficult 2022.
Sharma discussed how the business used community feedback and the lessons discovered from the Xiaomi 13 Pro launch the previous year. Xiaomi has learned a lot, one of which is to streamline its product line to facilitate customer selection.
Sharma responded, “Over the last five years, between Rs. 20,000 and 40,000, we have had some super successful launches – Redmi K series, which was Rs. 22 to 27K, then Xiaomi 10i, 11i, and then 11i Hypercharge – all of them had some significant volumes.” When asked about any specific strategy for the upcoming smartphone, which is expected to cost around Rs. 50,000, such as an upgrade offer for current Xiaomi users. They were all in the middle of a three-year update cycle. It becomes a nice road for upgrading if we can do the right justice at the appropriate price point and with the correct laddering,” Sharma said.
Sharma said that the majority of customer feedback for the Xiaomi 14 and Xiaomi 14 Ultra was good.
In some ways, an expansion of the Xiaomi 13 Pro. The seeds were sown correctly. Many individuals were hesitant to spend eighty thousand dollars on such a device at the time, but a year later, it has become increasingly difficult for us to set up a trade-in program for that phone. People are unwilling to return the favor. A few people we spoke with had purchased the 14 Ultra but were still carrying the 13Pro. They wish to employ both. That type of distinction is what we developed.”
Is there a market for high-end cellphones offline?
Xiaomi intends to leverage its extensive retail network to promote its growing line of high-end smartphones.
Sharma said, “The entire retail strategy is built on experience,” in reference to offline strategy. After the pandemic broke out, we started to go a little more in this direction because, at a given price point, the first gadget you purchase from a brand or series has to be offline. Most individuals ultimately give it a few tries before making a decision. It makes no difference if they purchase it later on Amazon, Flipkart, or Mi.com. However, the retail counters provide the experience.”
“We spoke about expanding our retail capabilities early in the year. We are addressing that component. Whether you visit one of our Mi Home or Mi stores, or we work with our organized trade partners, we want to make sure that there is a demo or a bit more understanding with a shopkeeper about what we offer so that they can make things right and talk about the right products. This goes even for some of the smaller, multi-brand outlets. The Xiaomi 14 and Ultra’s enchantment happens when you handle it for the first time. No specification document can convince you of anything before the camera is turned on,” he said.
