Xiaomi has launched some high-end 5G phones in the market, including the Xiaomi 13 Ultra, which competes with the likes of Galaxy S23 Ultra and iPhone 14 Pro Max. Despite this, the Chinese company seems to be committed to its core strategy of offering affordable smartphones tailored for the Indian market. Xiaomi plans to cater to India’s budget-friendly 5G market segment as the company’s India president, Muralikrishnan B, recently pointed out that real potential for 5G lies within the price range of Rs 10,000 to Rs 15,000.

The Real Potential for 5G Lies in the Mid-Range Market?

Muralikrishnan B said in an interview with CNBC-TV18 that “Majority of the devices sold in the high-end segment, which is the above Rs 30,000 segment have 5G. Then it diffused to the Rs 15,000 to Rs 20,000 bracket. However, the big opportunity lies in the Rs 10,000 to Rs 15,000 bucket where we (Xiaomi) have launched a few devices like Redmi Note 10T 5G, Redmi Note 11T 5G.”

Xiaomi India

The executive is not wrong, as most Indians still prefer to buy a balanced budget smartphone rather than opting for a premium one. The average selling price (ASPs) of smartphones in India was $224 (around Rs. 18,000) in 2022, according to Statista. Additionally, focusing on the Rs 10,000 to Rs 15,000 price range might prove beneficial for Xiaomi, considering the company’s reputation for offering budget-friendly phones in India.

After all, Xiaomi is not having the best time in India. According to Counterpoint Research numbers from January, Xiaomi’s India smartphone shipments in 2022 declined by 24% year-on-year. Despite managing to maintain its top position overall for 2022, the company dropped to the third place in Q4, falling behind Samsung and its Chinese competitor, Vivo.

Xiaomi’s confusing portfolio might also have something to do with its dimming shine in India. We believe the Chinese giant needs to fix its smartphone portfolio in India to keep up with the competition.

RELATED:

(Source)

RELATED ARTICLESMORE FROM AUTHOR