Xiaomi India shifts focus to premium smartphones to increase sales, profit

Copyright © HT Digital Streams Limit all rights reserved. Companies Jatin Grover 4 min Read 22 Apr 2025, 06:00 AM IST In 2021, Xiaomi had a 24% market share in volume terms, which dropped to 17% in 2024, according to estimates of Counterpoint India. (Bloomberg) Summary Xiaomi’s move to target the more than £ 20,000 smartphone segment assumes the meaning, as the company once led from 2017 to 2022 almost five years of India’s smartphone market, only on high volume sales in the budget segment. New Delhi: Chinese Consumer Electronics brand Xiaomi mapping a new course in a challenging Indian smartphone market, and prioritizing turnover and profitability by aggressively targeting mobile devices of mobile devices, above £ 20,000. This strategic pivot by the business reflects the developing consumer preferences for higher-end functions, Xiaomi India chief operating officer Sudhin Mathur Mathur told Mint in an interview. The company intends to distinguish itself through software, to improve user experience for its smartphones and bring advanced artificial intelligence (AI) functions to more affordable price points, Mathur said. Also read: Bhishavish Aggarwal Curbs Ambition, attempts to raise $ 300 million for AI business Krutrim “We had the biggest position. But in businesses the numbers are not as important as income and profitability. From the previous years the larger direction was likely to be. The volume growth of the smartphone industry. -Presentation in offline retail, analysts said. To focus on premium segment, they need to improve work at the offline sales point of sales and their brand messages, which they have done well recently. To the premium strategy, in which businesses sell higher price -laden products. Technology India fell 3.3% year-on-year to £ 25,816, while the net profit rose 21% to £ 288, according to data from business intelligence firm Tofler. In 2021, Xiaomi had a 24% market share in volume terms, which dropped to 17% in 2024, according to estimates of Counterpoint India. In the quarter of January March, the company’s share is estimated to drop to 12%, according to Counterpoint. A few years ago, a junk portfolio of smartphones also led to a stack of stock and lower sales for Xiaomi, which harmed its market share. “In 2022 we had about 28 products in the portfolio, and now we have 10, which is almost a third. We now have less but more impactful and better products, which follow the innovation on price segments,” Mathur said. In India, Xiaomi makes smartphones, smart TVs, smart watches and sound products through contract manufacturing partners such as Dixon Technologies, Byd, Optiemus Electronics and DBG. According to Mathur, 99% of Xiaomi’s smartphones and 100% of its TV sets are made in India. “Our local manufacturing strategy is moving in the right direction and as we continue to start new products, we will try to ensure that it is produced locally,” Mathur said, adding that the company does not intend to export the products from India and that the focus of local manufacturing should only serve on domestic demand. On Monday, the company launched its first locally manufactured smart watch, the Redmi Watch Move, in the country. Mathur said that the smart watch, which is priced at £ 1.999, is manufactured in the Noida Optiemus factory, thereby saving a 22% import tax by local manufacturing. Also read: Uttar Pradesh is aimed at tripling by 2030: daring vision or ambitious? When asked about the possibility of participating in the newly-feeded incentive scheme for components, Mathur said: ‘We still evaluate, we will see what the options and opportunities are. Currently, 35% of the non-PCB (printed circuit board) material (bomb) —cables, chargers, plastic, etc. For brands such as Xiaomi, local manufacturing and acquisition of components also helps to reduce costs. The company will continue its model of local manufacturing via Electronic Manufacturing Services (EMS) suppliers. “There is a price advantage you get (with localization), and we surrender it to the end client,” Mathur said. Last month, the government launched a scheme of £ 22,919, or $ 2.7bn, which will provide incentives of up to 10% of turnover and up to 25% of capital expenditure to set up electronic components in the country. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More topics #xiaomi -telefone #chinese smartphone #android smartphone #budget -lymphone #china #india mint special