“With the reset, recharge, refresh strategy and Xiaomi getting its mojo back (in 2023), we now have a three-year gameplan to play with, wherein we want to be the aspirational Indian’s most preferred and pioneering smartphone x AIoT brand,” Xiaomi India president Muralikrishnan B told reporters.
Premiumisation, fostering an integrated smartphone x AIoT experience for users, and synergising the omnichannel sales strategy will be the key pillars of the plan, he said.
“In 2024, the smartphone market in India will grow in a single-digit percentage, largely driven by 5G, and we’d like to be at the forefront of it,” Muralikrishnan said. “Over three years, definitely we would want to have a substantial share of the premium segment.”
The positive outlook on spending by the middle class in the coming years will also boost the smartphone market going forward, he added.
At the same time, the company will be open to leveraging its R&D investments in generative AI “as and when chipsets develop new capabilities”, though it will be up to application makers to get the best out of it, Muralikrishnan said.Chinese smartphone makers, bogged down by government scrutiny and competition in the market from major rivals such as Samsung, Vivo, Oppo and Apple, are looking to regain their once-dominant market shares in India. The company, which was the smartphone market leader for several years, had lost the crown to Samsung at the start of 2023 and then further slid to the fourth spot, before clawing back to the number two position recently.As part of the revival plan, Xiaomi, for instance, has since last year been looking to expand its offline retail presence and move away from its heavy reliance on online channels where its shipments declined in 2023.
The Indian smartphone market has seen a slump for two years, with experts and market trackers now forecasting an improvement in 2024. IDC India forecast 5-8% on-year growth in 2024 with shipments expected to hit 148 million units, while Counterpoint Research pegged it at 5% with shipments to be in the 155-157 million range.
The growth is expected to be on the back of 5G devices and smartphones likely to be given away by political parties ahead of the general elections.
Muralikrishnan said there are opportunities for 5G offerings at every price segment. “Our aspiration would be to play across price points while staying true to having a winner product in all key price categories and not overly cluttering the portfolio.”
After facing challenges in 2022, the company saw 2023 as a year for recovery, he said. It took a bet on 5G devices and cut back the number of models in its portfolio by 40% last year. The company aims to stick to a similar strategy going forward, the executive said.
