Xiaomi sets ambitious target of shipping 70 crore devices by 2034 in India

It followed a similar strategy with its smart TVs as well and saw immediate success. However, Xiaomi has been on a downward trend since then. The company has seen a shake-up in its top management post the Covid-19 lockdown and has also faced intense scrutiny from the Enforcement Directorate over alleged violations of the Foreign Exchange Management Act (FEMA). Even other Chinese players, Vivo and OPPO, have also faced criticism from the ED.

As things start to look up, Xiaomi is rebooting its India strategy. Based on changes in market dynamics and customer behavior, the company has focused on the premium smartphone category, said Muralikrishna B, president of Xiaomi India, at a press roundtable on the eve of its 10th anniversary in Bengaluru.

This year, Xiaomi launched the Civi 14 series (priced at Rs 40,000), while Xiaomi 14 and 14 Ultra were priced between Rs 65,000 and Rs 1,00,000.

Customers will see fewer Redmi phones below the Rs 10,000 price range as the company feels that is no longer feasible as component prices and inflation have increased. Build quality is hard to maintain and profit margins are too low to sustain.

The use of 5G modems in phones has also led to a drastic increase in the average selling price. The Redmi Note 4G series, including other Android phones that started at under Rs 10,000, now has an average selling price of Rs 21,000 (for entry-level models).

“Over the last 10 years, Xiaomi has been at the forefront of the 4G revolution. One day, when the history of the smartphone industry is written, I am sure there will be at least a page dedicated to how Xiaomi Redmi Note 4G started the entire 4G revolution and enabled millions of people to access high-speed internet. And it also played a big role in building India’s digital infrastructure faster,” said Muralikrishna B.