Xiaomi India plans to sell 700 million devices in next 10 years, ET Telecom

Bengaluru: Aiming to become the largest player in the connected ecosystem, Xiaomi India aims to ship 700 million devices including smartphones, IoT devices, wearables, etc. in the next 10 years.

Over the past decade, the company has sold about 350 million devices across all product categories, including 250 million smartphones.

Muralikrishnan B, president of Xiaomi India, said the company is looking to expand its component localization in the country.

“In our total bill of materials (BOM), non-semiconductor local materials constitute 35 per cent share, which is sourced locally. We expect this number to increase to 55 per cent in the next two years,” said Muralikrishnan.

The company will continue to invest in research and development. Globally, approximately 5% of revenue goes to research and development.

The smartphone brand aims to become the preferred brand of Indian consumers, rather than aiming to be the top player. “It (number one) will be a byproduct of doing things right. It’s a journey. At one point, we were aiming for the number one position. But now, we are more focused on customer preferences and providing them with the best experience. Our approach has evolved and is more sustainable,” he said.

He added that increasing local value addition in electronics manufacturing is one of the biggest challenges in India due to the shortage of electronic components.

“The domestic value addition, net value added, was 18 percent in FY2023, and with our focus on deepening and broadening the component ecosystem, we expect this number to increase to 22 percent by FY2025,” he added.

According to Counterpoint, second-place Xiaomi’s smartphone shipments grew 28% year-on-year in the first quarter of 2024. Its share of sales volume increased from 15.8% in the first quarter of 2023 to 18.8% in the first quarter of 2024, driven by a leaner and more optimized portfolio and a proactive offline channel strategy, the research firm said.

Xiaomi India CEO was speaking at the company’s 10th anniversary celebration in Bengaluru.

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