It has been five and a half years since Xiaomi entered the India market back in July 2014.
The Chinese company started its journey with the Mi 3, but with the passage of time, it shifted significantly to the Redmi brand.
Till date, Xiaomi launched over 40 smartphones in the country under the Mi, Redmi, and Poco brands, but the Redmi brand has so far dominated the company’s lineup with over 30 phones carrying the brand name that was coined back in 2013.
And now the Beijing based electronics company is set to introduce an “very cost effective high-performance smartphone” targeting the Indian feature phone users.
Lei Jun, founder and president of Xiaomi shared this information in the third quarter earnings call on November 24, 2020.
The company on November 24, 2020, announced its third quarter earnings result for the period ended September 30, 2020, with Xiaomi registering an 34.5% Year-Over-Year (YoY) increase in its revenues. Xiaomi has recorded an 18.9% YoY increase in its net profit.
Over a quarter of market share in India
Citing a report from Canalys, technology market analyst firm, Xiaomi claimed that they have captured 26.1% market share by smartphone shipments in India.
Founder and President Jun also said in third quarter earnings call that ““(In) Indian market, we are number one for I think 13 quarters already””, also highlighting that Indian smartphone market is worth 130 million to 150 million every year. According to Jun the new “growth areas” in the Indian market is the – feature phone segment.
To all those of you who are wondering what exactly a feature phone is.
A feature phone is a mobile phone that retains the form factor of earlier-generation phones, with button-based input and a small display.
They are a midway point between smartphones and basic phones. In the third quarter earning call to Jun “You can also see another 150 million feature phones, So that means, we have a lot of work to do, right? We should continue to innovate to make a very cost effective high-performance smartphones to serve the Indian consumers”
He added “We should go build the channels down to the countryside, the villages to serve the people there so that they can be equipped with a mobile internet so that we hope we can change their lives and help them to have a better life with the access to the internet”.
Jun also said how the organization is very optimistic about its future growth in the next five year period.
A Balanced Approach for the Indian Market
Jun said that Indian market has a “very strong online channels and offline channels.” Also he said that one needs to “have a more balanced approach, if you want to be successful in India” as close to 50% sales comes from online channels.
In its third quarter for the period ended September 30, 2020, the company highlighted that the smartphone shipments touched 46.6 million units translating to an 45.3% YoY increase. Also Jun stated that the company has growth potential in Europe as well as Latin America.
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