Xiaomi today held its first independent launch event for the new Redmi brand and during the event, the company launched the Redmi Note 7 as its first product. Xiaomi also explained the need for the Redmi brand to be independent. Xiaomi’s CEO Lei Jun also officially announced that Lu Weibing, the former president of Gionee, who has recently joined Xiaomi Group, will serve as vice president of Xiaomi Group and general manager of the new Redmi brand. Later on, Lei Jun granted the media an interview where he disclosed that he had to persuade Lu Weibing for two years until the former Gionee chief had to turn off his own startup and joined Xiaomi.
Lei Jun also shared some details of the Redmi brand stating that the brand will continue to pursue the ultimate cost-effectiveness, focusing on the e-commerce market and attracting sales from the Internet. The Redmi brand has always been known for its affordability. That isn’t likely to change as Lei Jun reportedly hinted during the media chat the Redmi brand will manufacture its own flagship mobile phone which will cost just around 2500 yuan ($370). The Mi brand, on the other hand, will focus on high-end phones
This effectively confirms speculations that the unbundling of the company’s phone brand is similar to what Huawei and Honor did, as well as OPPO and Realme brands. The split will undoubtedly be a good move for Xiaomi, perhaps a cash cow and so, we look forward to seeing how the company will milk this one.