Smartphone maker Xiaomi India is undergoing a noteworthy transformation in its business approach by introducing two high-end smartphones to the market. Currently, 85% of the company’s smartphone revenue is derived from devices priced below $300 (approximately Rs 25,000). Although Xiaomi has been venturing into the premium phone segment since 2019, it is currently intensifying its presence in the premium smartphone market, targeting a price range between Rs 50,000 and Rs 1 lakh, with the introduction of the Xiaomi 14 Ultra and Xiaomi 14.
Anuj Sharma, Chief Marketing Officer, Xiaomi India told Business Today, “What's happened is in just about two years, the average selling prices (ASP) have gone up significantly. This worked out perfectly for us because, from a point where people were not moving too far beyond the ASPs, now that they're willing to, and we are also able to get in devices that we were not able to get in earlier.”
He adds, “While we were looking at better devices, the single reason for upgrade that people look at is can I get a better camera? While this was happening, our partnership with Leica was kind of coming to the fore on the other side. So it just perfectly matched and people are upgrading, people are upgrading because of the camera. And we were lucky enough to tie up with the best camera manufacturers in the world to bring in the co-engineered Leica devices.”
Xiaomi’s first device with Leica globally was the Xiaomi 12s Ultra, which was not launched in India. But last year, the company introduced Xiaomi 13 Pro, which in Sharma’s words received a great response. This year, the company has introduced two smartphones co-engineered with Leica – Xiaomi 14 and Xiaomi 14 Ultra. “So we managed, to in a single year, leap into this space, which was essentially reserved for only two brands earlier. Now that we've done Xiaomi 13 Pro and it's been about a year, it was a perfect opportunity for us to get in Xiaomi 14 and also probably bring in the best camera on the phone – the Xiaomi 14 Ultra, and we are fairly positive in terms of how this will grow,” adds Sharma.
While the company is aiming to grow in the premium smartphone segment, it hasn’t set market share targets yet. “The objective is to get people to know you know what they're missing out on, and hopefully also educate them about our partnership with Leica about - how far can you go in terms of smartphone photography, considering this is one of the most important components that they pay for. I think once we've done with all of that, then we started looking at the business status.”
Xiaomi is set to complete 10 years in India in July this year, the company’s journey has been both interesting and challenging, especially, during and after the pandemic. “Overall, the consumer psyche has changed quite a lot. And probably for better or worse, the overall upgrade cycles have also gone longer. So we are trying to kind of slowly work with that aspect. But the advantage that you have with a Xiaomi is, while we straddle now price points from Rs 10,000 to Rs 1,00,000, we're not just a smartphone company,” adds Sharma.
Xiaomi entered into the smart home segment over six years ago and is also a market leader in smart TVs in the country, and this year is looking to expand into home automation with more options with smart robot vacuum cleaner, lighting and smart kitchen appliances.