Xiaomi To Make Things Even Harder For Apple In India
Xiaomi vice president of global operations Hugo Barra holds up a Mi Note after a presentation in San Francisco, Thursday, Feb. 12, 2015. While stopping short of declaring plans to sell phones in the United States, Xiaomi said Thursday that it will dip its toes in the U.S. market by selling headphones and other accessories online, through an Internet-based, fan-friendly model that has helped make the company one of the leading smartphone suppliers in China. Meanwhile, the company is expanding its smartphone base in India, its main market off the mainland. (Photo by Jeff Chiu/AP)
China’s privately held smartphone maker Xiaomi is going after the big guns. It’s beat Samsung in China. It is neck and neck with Apple. And now it is going to India on its first stop abroad.
The company said this week that it will unveil its first handset designed for exclusively for the Indian market on April 23. The phone is rumored to be called the Mi 4i.
India’s market is low cost. Their locally made Micromax Informatics name brand is currently the most sold smartphone in India, outselling Samsung last year, according to Indian research firm Canalys. Micromax has a 22% share while Samsung has a 20% share.
Apple is ranked eight in terms of market share as it struggles on the price size. Now that Xiaomi is coming to town, India will be even more of a challenge in India, the world’s fastest growing smartphone market.
Indians bought 21.6 million smartphones in the fourth quarter of 2014, making it the world’s third-largest smartphone market in terms of the number devices sold.
The country sold over 53 million smartphones in 2014, according to estimates from market pollsters at GfK.
According to Canalys, 23% of the smartphones sold in India were of devices priced under $100, while 41% were of devices sold were in the $100 to $200 price bracket. That isn’t exactly Xiaomi’s current sweet spot. The Mi 3 sells for 13,999 rupees on Flipkart, India’s premier e-commerce website. That’s currently $225. A 16 gigabyte Mi4 is selling for $290. Compared to Apple, that’s flea market pricing. In India, a 16 gigabyte iPhone 6 is priced at 48,500 rupee, or $782. Mind you,
the GDP per capita in India is around $2,000, making the iPhone 6 worth about four months of work.
China already has a presence in India’s smartphone market. ZTE and Huawei are there. Their pricing is about the same, with older models selling for under 10,000 rupees.
Beijing-based Xiaomi is a relative new entrant to the Chinese handheld market. To drum up interest for its India launch this week, they are attacking India’s social media to post teasers on its phone features.
Xiaomi’s selling point? Supposedly a longer battery life, the usual mid-range handset’s high-resolution display in a form factor that’s comfortable to use one-handed.
While there’s no indication as to the hardware the device will feature, recent leaks suggest that the Mi 4i will feature a 4.9-inch full-high-def screen, 64-bit 1.65GHz octa-core Snapdragon 615 SoC, 16GB, a 12 mega pixel camera, and also Android 5.0.2 out of the box. Given that the latest iteration of MIUI 6 is based on Android 4.4.4 KitKat, it is likely we’ll see the global debut of a new version of MIUI at the launch event as well. MIUI has gained traction worldwide as a custom read-only-memory, with Xiaomi announcing earlier this year that there are over 100 million users of the ROM worldwide,
VR World reported on Tuesday.
Xiaomi debuted in India last year. It’s taken a cue from Apple and is setting up “experience stores” across India, which will have their own in-house geek squad to fix broken phones.
Also this month, Xiaomi said that it is partnering now with Amazon and Snapdeal rather than be exclusively with Flipkart.
Apple is Xiaomi’s biggest rival in China, at least based on this current year’s data.
From December to February 2015, the latest number for smartphone sales in China, Apple’s market share hit 27.6% versus the 25% in the November to January period, according to consumer research firm Kantar Worldpanel.
Last year, only 40% of China’s mobile phone customers even had a smartphone, according to IDC. There is ample room for growth as China moves up the middle income scale, and domestic brands discover new ways to make cheaper devices to bring in the newcomers. Apple sales have been immune to lower cost rivals in China, but India will be a different story.
Apple remains a favorite among India’s tech nerds, however.
Digit magazine put
Apple’s iPhone 6 as its fourth most recommended smartphone. These guys have expensive tastes, however. Their leader was the Moto Turbo, priced at a whopping 41,999 rupee on Flipkart. The Xiaomi Mi4 was ranked tenth.