[Exclusive] Xiaomi is set to launch a new phone; targets the Rs 50,000 segment

After launching the 14-series earlier this year, Xiaomi is now planning to make a major push into a price segment that it has previously missed out on. Speaking to Gadgets 360, Anuj Sharma, CMO—Xiaomi India, confirmed that the company is gearing up to launch a smartphone priced around Rs. 50,000. This new smartphone from Xiaomi will bridge the gap between the Redmi Note 13 Pro+ 5G that starts at Rs. 30,999 (8+256GB) and goes up to Rs. 34,999 (12+512GB) and the flagship Xiaomi 14 that costs Rs. 69,999.

“I don’t think there’s anyone who makes 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 introduce a device that does it justice,” Sharma told Gadgets 360.

Sharma did not give any further details about the upcoming Xiaomi smartphone, but added that the new smartphone would be an excellent all-rounder.

“When you approach a price band in the middle, Rs 50,000 is a critical price point in the premium segment, equivalent to Rs 9,999 in the economy segment. When this online thing started in 2014-15, a Rs 9,999 and a Rs 10,999 product were perceived very differently in India. Similarly, the consumer mindset changes significantly once you go above Rs 50,000 or stay below 50,000. Over the years, the Rs 50,000 smartphone segment has been forgotten,” Sharma pointed out while discussing why this segment has been a missed opportunity for most smartphone players in recent times.

Currently, the Rs. 50,000 price bracket has only a limited number of players. There’s iQOO, which markets its devices towards performance-oriented users. OnePlus has done particularly well in this segment, with the 11R and 12R enjoying huge success, but both have seen minor spec upgrades and are hardly groundbreaking in terms of what they have to offer at this price point. Apple and Samsung, on the other hand, have taken very different approaches. Apple’s iPhone SE is for those who want a small smartphone or can step up to the iPhone 13 at discounted prices from e-commerce giants. Samsung recently launched the Galaxy A55 for Rs. 45,000, making the base S24 more expensive this year. The gap in the smartphone market is clear and Xiaomi is looking to capitalize on that.

Anuj Sharma, CMO – Xiaomi India, speaking at a briefing for Xiaomi 14 (February 2024)

Xiaomi in 2024

Xiaomi has been a major player in the smartphone market this year and has seen significant growth. According to analyst reports, the launches of the Redmi Note and Xiaomi 14 series have been well received. The latest report from IDC indicates that Xiaomi is leading the sub-$100 smartphone segment. This positive momentum has continued from 2023 onwards, after a challenging 2022 for the company.

Sharma spoke about how the company incorporated feedback from the community and lessons learned from the launch of the Xiaomi 13 Pro last year. One of the biggest lessons Xiaomi learned was to simplify its product portfolio to make it easier for consumers to choose.

When asked about any special strategy for the upcoming smartphone around the Rs. 50,000 mark, such as an upgrade offer for existing Xiaomi users, Sharma explained, “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 – they all had some significant volumes. They were all on a three-year upgrade cycle. If we can get the right one right at the right price point and laddering right, it becomes a good path for upgrades,” Sharma explained.

When asked about the consumer feedback on the Xiaomi 14 and Xiaomi 14 Ultra, Sharma replied that it was mostly positive.

“An extension of the Xiaomi 13 Pro in a way. It sowed the right seeds. A lot of people were skeptical at the time – if they wanted to buy this product for 80K, but a year later it’s become very difficult for us to create a trade-in program for that phone. People are not willing to give anything back. We met a few people who bought the 14 Ultra and kept the 13Pro. They want to use both. We created that kind of distinction.”

Is the offline market important for premium smartphones?

Xiaomi already has a large retail presence and would like to use this to showcase its growing range of premium smartphones.

On offline strategy, Sharma explained, “The entire retail strategy is experience-driven. We have moved a little more in this direction post-pandemic because as you go higher into a certain price point, the first device you buy from a brand or a series has to be offline. Most people try it a couple of times and then decide. Later, if they buy it on Mi.com or Flipkart or Amazon, it doesn’t matter. But the experience comes from the outlets.”

“Early last year, we talked about building more retail capabilities. We are working on that aspect. Whether you go to Mi Home or Mi Stores, or we work with our organised trade partners, but even at some of the multi-brand outlets, the smaller outlets, we try to ensure that there is some kind of demo, that there is some more understanding with a retailer in terms of what we are offering, so that they can get things right and they can talk about the right products. The magic of the Xiaomi 14 and Ultra is the first time you hold it. There is no spec sheet that can make you believe and then the moment you fire up the camera,” he added.

We’ll hear more about the upcoming Xiaomi smartphone soon. Stay tuned to Gadgets 360.