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Tag: Xiaomi

  • Foreign Tech Investors Pay up to US$15,000 for Access to Chinese Factory Floors

    Foreign Tech Investors Pay up to US$15,000 for Access to Chinese Factory Floors

    Foreign investors and tech executives are paying up to US$15,000 each to tour Chinese manufacturing plants. The visits cover robotics, electric vehicle and artificial intelligence facilities across five industrial hubs.

    Western and regional boardrooms face pressure to see if Chinese automation has pulled ahead of global rivals. These paid delegations offer a direct look at mainland hardware supply chains.

    Programmes span Beijing, Shenzhen, Shanghai, Hangzhou and Hefei. Shanghai-based data research firm Baiguan charges up to US$15,000 for a five-day itinerary. Around half its participants come from Southeast Asia. Tech tour agency Glopen reported a 50 per cent jump in enquiries during 2026, mostly from European and Singaporean clients. It now operates more than 100 single-day corporate visits every month. Tech Buzz China founder Rui Ma has organised 11 delegations since 2019, including an April tour through three cities focusing on robotics.

    The Business Behind Factory Tourism

    State backing has turned industrial site visits into commercial business across the mainland. Beijing has designated more than 140 demonstration sites for industrial tourism. The sector generated US$17.8 billion last year and is projected to reach 300 billion yuan (US$44.6 billion) by 2029.

    Public rates for individual factory visits usually run around US$60, but premium access commands steep markups. Xiaomi’s electric vehicle assembly plant in Beijing has recorded more than 250,000 visitors since March 2024. Entry slots from Xiaomi’s official lottery system have been scalped on secondary platforms for up to 2,000 yuan (US$300), despite company rules barring transfers.

    Institutional investors have quietly joined the circuit. US firms Dimension, Capital Group and Thrive Capital have all sent representatives to inspect mainland production setups. European corporate delegations have also toured sites to study state-backed technology coordination.

    Hardware Dependence and Supply Realities

    Consumer hardware and robotics brands see that physical supply chains remain tethered to southern China. Geopolitical posturing has not changed that reality. Western developers still depend on mainland ecosystems for sensors, battery cells, structural frames and precision actuators. Replicating those supplier clusters outside the Pearl River Delta remains slow and capital intensive.

    Visitors risk mistaking demonstration speed for total commercial dominance. Non-Chinese technology firms still hold most global market share, high-margin software profits and core intellectual property. In sectors like autonomous robotaxis, Chinese domestic deployment continues to move cautiously. Regulators remain concerned about urban transport employment.

    Shenzhen Emerges as the Focal Point

    Years of infrastructure spending transformed Shenzhen from a contract assembly zone into an integrated hardware design centre. The current tour rush builds on that base. Foreign visitor arrivals in Shenzhen jumped 70 per cent last year and rose another 30 per cent in the first quarter. Total entries topped 5 million through August.

    Founders use 10-day visa-free entry policies to test prototypes directly with component suppliers. Local operators have opened communal hacker houses for visiting robotics and AI engineers. Informal network groups coordinate factory access across Shenzhen and Silicon Valley.

    Next up is the Asia-Pacific Economic Cooperation forum in November, which Shenzhen will host. Municipal officials plan to show automated assembly plants and urban drone networks to pitch the city’s hardware infrastructure to visiting regional trade delegations.

  • Xiaomi Launches 18 Fold Smartphone at 10,999 Yuan with Custom Silicon

    Xiaomi Launches 18 Fold Smartphone at 10,999 Yuan with Custom Silicon

    Xiaomi launched its flagship 18 Fold smartphone in Beijing on Monday, pricing the device from 10,999 yuan (US$1,639) to compete directly with high-end foldables from Huawei and Apple.

    The phone carries Xiaomi’s proprietary Xring O3 processor and LPDDR6 memory from ChangXin Memory Technologies, with sales opening on Thursday at 10am across mainland retail channels.

    Founder and chief executive Lei Jun detailed the hardware specifications at the Beijing presentation. The device includes a 7.58-inch inner display, a reinforced hinge mechanism, an aluminium chassis, and strengthened cover glass. The 24-billion-transistor Xring O3 artificial intelligence processor raises central processor performance by 60 per cent over the prior Xring O1 generation while cutting energy consumption on select workloads by 25 per cent. Lei said Xiaomi has earmarked 50 billion yuan specifically for custom chip development, part of a wider 200 billion yuan research and development budget planned over the next five years.

    Silicon Independence and Electric Vehicle Pricing

    Alongside the phone, Xiaomi rolled out its Pad 9 Pro Max tablet starting at 4,799 yuan, also powered by the Xring O3, and priced its extended-range Skynomad sport utility vehicles. The five-seat N70 Pro SUV starts at 209,900 yuan, while the seven-seat N90 Max begins at 269,900 yuan. Both undercut Tesla’s Model Y L, which retails from 339,000 yuan in China. The extended-range powertrain uses an auxiliary petrol engine to charge the battery pack, delivering a driving range exceeding 1,000 kilometres on a single cycle.

    For consumer tech retailers and premium device vendors across Asia, Xiaomi’s dual offensive in mobile silicon and electric mobility tightens pricing pressure across two categories simultaneously. By pairing domestic memory from CXMT with proprietary processors, the company shields its bill of materials against international component shortages that are squeezing entry-level hardware margins. The aggressive SUV pricing also demonstrates that Xiaomi is treating hardware margins as secondary to ecosystem lock-in, forcing traditional carmakers and handset specialists to defend their retail territory on compressed margins.

    Premium Tier Resists Smartphone Downturn

    The product blitz lands during an intense competitive window in China. Huawei unveiled its Mate XT 2 trifold handset on Monday starting at 19,999 yuan, using its Kirin 9050 Pro processor. Richard Yu Chengdong, chairman of Huawei’s Consumer Business Group, confirmed that Huawei has sold more than 1 million trifold devices worldwide. Meanwhile, Apple is scheduled to present its product line-up on Wednesday in California, where analysts anticipate the launch of a foldable model priced above US$2,000.

    This surge in premium launches contrasts sharply with the broader consumer hardware environment. Counterpoint expects global smartphone shipments to contract 12.4 per cent this year, hit by surging memory costs and lengthening replacement cycles among budget consumers. Premium foldables remain an exception. Counterpoint projects cumulative worldwide foldable shipments will cross 100 million units by year-end, with annual category shipments set to expand 37 per cent in 2027.

    Xiaomi built up to this release after spending 105.5 billion yuan on research and development over the past five years and first previewing the Skynomad vehicle architecture in late July. The group had previously rolled out the first-generation Xring O1 chip last year to test its custom silicon pipeline in select devices.

    Market attention now shifts to Thursday morning retail sell-through figures for the 18 Fold, followed by initial delivery volumes for the Skynomad SUV series ahead of fourth-quarter earnings.

  • TSMC Agrees to Produce Three 3Nm Chips for Xiaomi

    TSMC Agrees to Produce Three 3Nm Chips for Xiaomi

    Taiwan Semiconductor Manufacturing agreed to produce three custom chips for Xiaomi, including a next-generation three-nanometre smartphone processor starting in 2026.

    The contract ties the $2.0 trillion Taiwanese foundry directly into the Chinese brand’s hardware expansion across flagship handsets, smart devices and automotive platforms. Xiaomi plans to deploy the primary 3nm design, designated the Xring O3, in its premium smartphones before rolling out two companion processors for consumer artificial intelligence devices and autonomous vehicle controls.

    Expanding beyond data centres

    Adding Xiaomi diversifies TSMC’s advanced-node order book at a time when top-tier 3nm wafer allocation has remained heavily concentrated among Western computing and mobile clients. Handset manufacturers in Asia have spent three years attempting to bring proprietary silicon in-house to reduce their dependence on merchant chipmakers. Xiaomi’s commitment to custom designs manufactured on TSMC’s cutting-edge lithography mirrors earlier silicon strategies from rival hardware makers, though extending those designs into vehicle autonomy widens the operational scope.

    For consumer tech brands in Asia, controlling chip architecture allows tighter software integration across connected ecosystems, from living-room appliances to electric sedans. The arrangement secures advanced fabrication capacity for Xiaomi while providing TSMC with volume demand outside its core server and cloud computing base.

    Wafer volume targets

    Initial commercial success hinges on the manufacturing yield and delivery pace of the Xring O3 line during 2026. Market performance will depend on the speed at which Xiaomi ramps retail shipments of its 3nm handsets and incorporates the subsequent automotive silicon into its production vehicles.

  • China Orders Year-Long Auto Safety Review as EV Deliveries Fall 12.5 per Cent

    China Orders Year-Long Auto Safety Review as EV Deliveries Fall 12.5 per Cent

    China’s industry ministry has launched a nationwide quality inspection campaign across the auto sector. The decision follows a 12.5 per cent drop in domestic electric vehicle deliveries in the first seven months of 2026.

    Roughly 100 domestic manufacturers fall under the one-year regulatory review. Officials are targeting smart driving features, vehicle design standards and battery hardware. Vice-Minister of Industry and Information Technology Xin Guobin told a Beijing press conference that authorities will bar new auto technologies from the market if they fail stricter verification protocols.

    Stricter rules for driver assistance

    Regulators stepped in following fatal crashes and a rise in complaints over software malfunctions and battery defects. In central China’s Anhui province, three people died when a Xiaomi SU7 crashed into a barrier under driver-assistance software. The system alerted the driver only two seconds before impact. State media also reported an increase in formal battery quality complaints filed with public inspection bodies this year.

    Automakers must now redirect capital toward core manufacturing controls instead of racing to roll out experimental software. For years, domestic brands used rapid updates to autonomous driving and digital cockpits to stand out in crowded showrooms. Stricter approvals will slow product rollouts across the board. That gives established global marques breathing room while putting cash-strapped local startups under immediate strain.

    Price wars and dropping sales

    Showroom traffic is contracting sharply as the checks begin. Data from the China Passenger Car Association showed overall passenger vehicle deliveries fell 20.9 per cent year on year in July to 1.46 million units. Electric vehicle deliveries dropped 3.9 per cent to make up 65.1 per cent of that total. It was the seventh straight month of declining volume.

    Price cuts have failed to revive foot traffic as consumer subsidies taper off. Domestic manufacturers delivered 5.67 million electric vehicles between January and July, down from the same period a year earlier. RetailNews Asia will track whether the ministry’s inspection guidelines, scheduled to take effect within weeks, trigger formal product recalls or delayed model launches in the fourth quarter.

  • Apple Leads Asian Smartphone Market as Xiaomi Expands Low-Cost Reach

    Apple Leads Asian Smartphone Market as Xiaomi Expands Low-Cost Reach

    Apple captured 21.16 per cent of Asia’s smartphone market through early 2026, leading an increasingly divided consumer hardware market across the region. Samsung held second place with 15.57 per cent, retaining its broader footprint after regaining leadership in Southeast Asia despite a 1 per cent dip in total regional shipments during 2025.

    Xiaomi secured third position across Asia with a 12.02 per cent market share, lifting its Southeast Asian shipments 4 per cent to 17 million units. Vivo and Oppo followed with 10.5 per cent and 9.8 per cent shares across Asia, while Huawei retained roughly 18 per cent of domestic shipments in mainland China.

    Social Commerce Alters Budget Device Distribution

    Digital storefronts and direct livestreams on platforms like TikTok have transformed low-cost distribution across developing markets. Xiaomi’s sub-brand POCO recorded its highest monthly volume in November 2025, moving units ranging from the $93 entry-level C71 to the $427 mid-range F7 model.

    Transsion captured 16 per cent of Southeast Asian shipments, supported by basic itel models priced below $30 that drove substantial volume in Vietnam and the Philippines. In Japan, domestic manufacturers Sony and Sharp maintained defensible positions in their home market alongside established flagship brands.

    Component Inflation Squeezes Entry-Level Margins

    Consumer demand in Asia now sits at two distinct poles: premium buyers paying top dollar for ecosystem flagships, and price-sensitive shoppers seeking maximum specifications under $100. While Apple and Samsung control the profitable high end, budget-focused manufacturers face immediate margin erosion from rising memory and storage component expenses.

    Hardware makers entering the second half of 2026 face higher bills of materials that directly threaten sub-$200 device margins. Brands operating in emerging Southeast Asian markets must decide whether to absorb these memory cost increases or risk raising retail price tags above critical affordability thresholds.

  • China Recalls Seven Million Electric Vehicles over Door Handle Safety Flaws

    China Recalls Seven Million Electric Vehicles over Door Handle Safety Flaws

    Chinese market regulators ordered the recall of more than seven million vehicles on Friday across automakers including Tesla, Xiaomi, Xpeng and Geely over emergency door release hazards. The joint filing stands as the single largest automotive recall round in the country’s history.

    State Administration for Market Regulation officials identified interior emergency mechanical door releases designed in colors matching adjacent trim, leaving occupants unable to locate or operate the latches quickly during severe collisions that disable vehicle low-voltage electronics.

    Tesla Accounts for Majority of Notices

    Tesla represents the largest share of the campaign, filing two separate notices covering 5,716,552 vehicles. The company is recalling 2,975,910 cars for the door release defect starting September 25, 2026, comprising 973,156 locally built Model 3 sedans, 1,956,713 Shanghai-made Model Y crossovers, and 46,041 imported Model 3, Model S and Model X units. Tesla will apply warning labels at no cost and push over-the-air software updates to lower windows automatically after an impact.

    A parallel Tesla recall covers 2,740,642 domestic Model 3 and Model Y units to fix driver attention monitoring systems. The regulator determined existing steering torque sensors failed to catch drivers looking away from the road, prompting Tesla to activate in-cabin camera monitoring immediately through software.

    Domestic manufacturers submitted simultaneous plans for their electric lineups. Xiaomi is recalling 390,435 units of its SU7 sedan to add labels and update central console unlocking code, while Leapmotor called back 371,200 vehicles across its C11 and C01 ranges. Xpeng recalled 264,842 units, Geely’s Zeekr brand listed 92,658 models, Chery recalled 68,488 vehicles, Dongfeng took in 53,452, and BAIC BluePark Magna recalled 46,850 Arcfox Koala cars.

    New Door Hardware Standards Loom

    The regulatory action follows repeated consumer complaints and crash investigations where electronic flush handles failed to deploy after battery failure. China’s auto sector previously prioritized flush exterior handles and hidden interior buttons to improve aerodynamics and interior styling, but safety authorities have pushed back firmly against purely electronic latches.

    Automakers in China must now prepare for mandatory national standard GB 48001-2026, issued in February. The rule requires physical, mechanical releases on all passenger doors for newly certified models starting January 1, 2027, with previously approved models required to comply by January 2029.

  • Chip Squeeze Drives up Smartphone Prices in India, Boosting Apple and Samsung over Chinese Rivals

    Chip Squeeze Drives up Smartphone Prices in India, Boosting Apple and Samsung over Chinese Rivals

    Rising memory chip costs are significantly impacting India’s smartphone market, leading to a surge in average selling prices and a shift in consumer preferences. The average smartphone selling price in India has reached a record $315, marking a 14.4 percent increase from the previous year, according to recent market data.

    This price inflation is particularly affecting budget-focused Chinese smartphone brands, which have historically dominated the sub-$150 segment. As cheaper chips become scarce and more expensive, these companies are forced to raise their prices, diminishing their traditional value-for-money appeal. Conversely, premium and mid-range players such as Samsung and Apple are gaining market share, partly due to improved financing options that make their higher-priced devices more accessible to consumers.

    Chinese Brands Face Mounting Pressure

    Chinese smartphone makers, including Vivo, Oppo, Xiaomi, and Realme, experienced significant declines in shipments during the June quarter. Vivo’s shipments fell by 13.9 percent, Oppo by 8.5 percent, Xiaomi by 10 percent, and Realme by 14.2 percent year-on-year, according to IDC. Only OnePlus, which caters to a higher-end segment, saw a smaller decline of 2.5 percent.

    Industry experts indicate that the era of sub-$150 smartphones is effectively over in India. New Chinese models with similar features are now expected to cost between $200 and $250, a substantial increase from their previous pricing. This pricing pressure has already led to some budget brands raising smartphone prices by up to 40 percent.

    This development is crucial for RetailNews Asia readers, as India represents one of the world’s largest and fastest-growing consumer markets. The shift towards premiumisation, driven by supply chain economics, presents both challenges and opportunities for retailers and brands operating across Asia-Pacific. As affordability dynamics change, retailers may need to adapt their product assortments and financing solutions to cater to evolving consumer demand.

    Samsung And Apple Expand Their Foothold

    In contrast to the struggles faced by Chinese brands, Samsung and Apple have demonstrated resilience and growth. In the June quarter, Samsung’s shipments rose by 0.4 percent, and Apple’s by 0.7 percent. This enabled Samsung to narrow the gap with the leading player, Vivo, increasing its market share by nearly 200 basis points. Apple also saw its market share rise by 100 basis points in the same period.

    Samsung, with its diverse portfolio spanning from $200 to over $800, is intensely competing with Vivo in the $200-$300 segment. A key advantage for Samsung is its access to in-house memory chip supplies, which mitigates some of the cost pressures affecting competitors. Many Chinese firms rely on external suppliers like MediaTek, SK Hynix, and even Samsung for their chips, making them more vulnerable to price fluctuations.

    The global memory chip shortage, exacerbated by increased demand for AI and data center applications, has driven chip prices up fourfold since September 2025, with further increases anticipated. This trend is expected to continue pushing smartphone prices higher, accelerating the Indian market’s shift towards more premium products as financing options become more prevalent for expensive handsets.

  • Xiaomi SU7 Electric Vehicle Surpasses Half Million Deliveries Amid Strong EV Sales

    Xiaomi SU7 Electric Vehicle Surpasses Half Million Deliveries Amid Strong EV Sales

    Xiaomi’s SU7 electric vehicle has reached a substantial delivery milestone, with over 500,000 units now in the hands of customers. This achievement underscores the robust growth in electric vehicle (EV) sales and signals the increasing influence of technology companies in the automotive sector.

    The SU7’s rapid adoption reflects a broader trend of accelerating EV demand, especially within the Asia-Pacific region. As traditional automakers face heightened competition, new entrants like Xiaomi are quickly capturing market share with their tech-integrated vehicles.

    Accelerating EV Market Penetration

    The half-million delivery mark for the SU7 demonstrates Xiaomi’s successful entry into the highly competitive EV market. The company, initially known for its smartphones and consumer electronics, has used its brand recognition and technological expertise to quickly establish a presence in automotive manufacturing. This pivot highlights the convergence of consumer tech and mobility, a trend reshaping retail and consumption patterns across Asia.

    Strong sales figures for the SU7 contribute to the overall surge in electric vehicle adoption globally, with China remaining the largest market. Consumer preferences are shifting towards sustainable transportation options, driven by environmental concerns, government incentives, and advancements in battery technology and charging infrastructure.

    Broader Implications for Retail and Tech

    Xiaomi’s performance with the SU7 provides a clear example for other tech companies considering expansion into new hardware categories. The success in automotive highlights the potential for brand diversification beyond core products, particularly in high-value consumer goods. This move also forces traditional automotive retailers and brands to adapt their strategies, focusing on digital integration, advanced features, and a smooth customer experience that tech-savvy consumers expect.

    The competitive market in Asia’s EV market is intensifying, with both established brands and new startups vying for dominance. RetailNews Asia has been tracking similar moves by companies like Sony, which is also exploring mobility solutions, indicating a strategic shift among tech leaders to diversify their product ecosystems and tap into lucrative automotive opportunities.

  • Xiaomi Vietnam Fined $11,000 For Breach Of Consumer Protection Laws

    Xiaomi Vietnam Fined $11,000 For Breach Of Consumer Protection Laws

    Xiaomi Vietnam, a distributor of consumer electronics under the Chinese brand Xiaomi, has been penalized with a fine of VND290 million (US$11,000) for breaches of consumer protection laws, especially involving the use of personal data for marketing purposes. The company was charged with not granting customers the choice to either consent or decline the use of their personal details for advertising, product promotion, and various commercial activities. This breach was confirmed by the National Competition Commission (NCC) under the Ministry of Industry and Trade.

    Additional Violations

    Furthermore, Xiaomi Vietnam was found guilty of not informing consumers about its use of influencers for product promotion, using their images and endorsements without due notice. The firm was also penalized for incorporating illegal clauses in its general transaction terms.

    The NCC has mandated that the company immediately halt all illegal activities and promptly reassess and enhance their general transaction terms and conditions, consumer data protection policies, and activities related to the provision of information and product promotions through influencers. This is to ensure full compliance with the legal regulations.

    Xiaomi Vietnam, which has been operating since 2019 and is headquartered in Ho Chi Minh City, offers a variety of consumer electronics, such as smartphones, tablets, wearable devices, TVs, robot vacuum cleaners, and smart home devices.

    Questions & Answers

    What was Xiaomi Vietnam fined for?
    Xiaomi Vietnam was fined for breaching consumer protection laws, specifically in relation to the use of personal data for marketing purposes without consumer consent.

    What other violations was Xiaomi Vietnam charged with?
    Further charges against Xiaomi Vietnam included the failure to inform consumers about their use of influencers for product endorsement, and the inclusion of illegal provisions in their general transaction terms.

    What steps has the NCC mandated for Xiaomi Vietnam?
    The NCC has ordered Xiaomi Vietnam to immediately stop all illegal activities and to review and update their transaction terms, consumer data protection policies, and influencer-related promotional activities to adhere to legal regulations.

  • Xiaomi Eyes Global Market Expansion Amidst Local Turbulence and Rising Component Costs

    Xiaomi Eyes Global Market Expansion Amidst Local Turbulence and Rising Component Costs

    Xiaomi Corp., a leading Chinese tech firm known for smartphones and electric vehicles, announced a 43% decrease in net profit in the first quarter of 2022. A variety of factors such as increased memory and other component costs, domestic competition, and investment in new ventures have resulted in a decline in the company’s smartphone segment.

    Expansion Plans Amidst Challenges

    For the first quarter, Xiaomi reported an adjusted net profit of 6.1 billion yuan (around US$899 million), slightly less than the average analyst prediction of 6.4 billion yuan. In order to counterbalance the increased costs of components and heightened competition, Xiaomi plans to extend its reach further into foreign markets.

    According to Xiaomi’s president, William Lu, the industry is adjusting to the “new normal,” comprised of higher memory costs. However, the surge in memory costs is forecasted to decrease starting in the third quarter.

    Xiaomi has been channeling resources into electric vehicles and artificial intelligence, in an effort to diversify its revenue streams outside its main smartphone business. Although the electric vehicle segment continues to grow and contribute to the company’s income, it is impacting earnings due to high investment and lower margins.

    Financial Performance and Future Outlook

    In the first quarter, the company’s electric vehicle business generated revenue of 19 billion yuan, a 5.1% increase from the previous year. However, operations related to electric vehicles, artificial intelligence, and other new initiatives resulted in losses amounting to 3.1 billion yuan.

    During this period, Xiaomi distributed 80,856 electric vehicles, a significant drop from the 145,115 units delivered in the fourth quarter. However, this still represents a 6.6% rise from the previous year.

    The first-quarter revenue was reported to be 99.1 billion yuan, slightly below the average analyst estimate of 103.4 billion yuan. Recently, the company launched a new, more affordable version of its flagship YU7 SUV series, priced around 8% lower than its predecessor, intensifying the competition with Tesla in China’s car market. The company has further plans to expand into European markets by 2027.

    Xiaomi, currently the world’s third-largest smartphone manufacturer, saw a 19% decrease in smartphone units shipped in the quarterly period. Revenue from the smartphone division fell by 12.5% to 44.3 billion yuan, mainly due to elevated component prices and increased domestic competition.

    Questions & Answers

    What are Xiaomi’s plans to cope with the slump in net profit?
    To offset higher component costs and tougher competition, Xiaomi aims to expand further into overseas markets.

    What is Xiaomi’s “new normal”?
    The “new normal” refers to the industry’s adaptation to higher memory costs, as stated by Xiaomi’s president, William Lu.

    What is Xiaomi’s future outlook in the smartphone market?
    The outlook remains weak due to the ongoing memory chip shortage, which is expected to last until late 2027, and geopolitical tensions in the Middle East impacting consumer sentiment.

  • Xiaomi Triumphs, Reclaims Leadership in Southeast Asia’s Smartphone Market After Four-Year Battle

    Xiaomi Triumphs, Reclaims Leadership in Southeast Asia’s Smartphone Market After Four-Year Battle

    Xiaomi has positioned itself as a dominant player in Southeast Asia’s smartphone market, capturing 19% market share, bolstered by impressive sales of its Redmi series and a robust expansion into direct-to-consumer and operator channels. The findings from Canalys, a U.S.-based market research firm, highlight the brand’s strategic moves to cement its foothold in the region.

    Le Xuan Chiew, a research manager at Canalys, attributed Xiaomi’s strong performance to its ability to scale sub-brands effectively. In a surprising twist, shipments for Poco, a Xiaomi sub-brand, more than doubled, while the premium Xiaomi 15 series experienced a phenomenal 54% growth year on year. This marks a significant shift for a brand that has historically been seen as a budget-friendly option.

    Transsion Rises with New Offerings

    Second place in the rankings went to China’s Transsion, which sold 4.5 million units as it enjoyed a robust 17% increase, thanks to recent launches in its budget-friendly entry-level portfolio. With 18% of the market share, Transsion is proving that affordability can still captivate consumers.

    Samsung Expands 5G Presence

    Samsung secured third place with 4.3 million units, reflecting a slight 3% dip from the previous year. However, its 5G-capable devices are gaining traction, particularly in Vietnam and Singapore, backed by the attractive value proposition of its Galaxy A06 5G and A16 5G models. “Samsung is not just selling phones; it’s crafting a legacy of reliability, especially in the enterprise sector,” Chew noted.

    Competition Heats Up for Oppo and Vivo

    Following close behind is Oppo, claiming fourth place with 3.5 million units sold, despite a 19% decline as competition intensifies at the entry-level. Holding a 14% market share, Oppo’s challenges reflect the shifting dynamics in the smartphone landscape. Vivo rounded out the top five with 2.8 million units, suffering a steeper 21% drop as it pivots strategically towards profitability, representing an 11% market share.

    Market Outlook Faces Uncertain Currents

    The overall Southeast Asian smartphone market saw a 1% decline, totaling 25 million units sold in the second quarter. A significant factor in this downturn is ongoing tariff uncertainties that continue to cast shadows over the region’s economic outlook. Chew emphasized that the ongoing U.S.–China trade tensions are reshaping supply chains, compelling vendors to reallocate resources away from China in favor of U.S. shipments. This situation has disrupted inventory planning across manufacturing hubs, particularly in China and Vietnam.

    Moreover, currency volatility—especially the weakening of the U.S. dollar—is affecting local purchasing power and retail pricing strategies, pressuring vendors to reconsider pricing and promotions to stay viable in the market. While shipment volumes have remained relatively steady, rising tariff concerns and persistent macroeconomic challenges are dampening consumer enthusiasm, particularly within the mass market segment.

    Questions & Answers

    What factors contributed to Xiaomi’s market leadership in Southeast Asia?
    Xiaomi’s market leadership is attributed to strong sales from its Redmi series and an effective expansion into direct-to-consumer and operator channels, which have helped scale its sub-brands, particularly Poco.

    How did Transsion manage to increase its market share?
    Transsion’s market share increase can be traced back to successful launches within its entry-level portfolio, appealing to budget-conscious consumers and allowing it to capture 18% of the market.

    What challenges are impacting the overall smartphone market in Southeast Asia?
    The smartphone market is facing challenges due to ongoing tariff uncertainties, U.S.–China trade tensions affecting supply chains, currency volatility impacting prices, and shifting consumer sentiment, especially in the mass market sector.

  • Xiaomi Opens Its First Offline Store in Korea: A New Era for Retail Enthusiasts!

    Xiaomi Opens Its First Offline Store in Korea: A New Era for Retail Enthusiasts!

    Retail giants across Asia are diving deep into the realm of experiential shopping, and the recent emergence of live-streaming commerce is reshaping the retail landscape. As consumer preferences evolve, companies are jostling to innovate and offer a more immersive shopping experience that transcends traditional retail boundaries.

    Live-Streaming Commerce: A Game Changer

    Powered by the meteoric rise of social media platforms, live-streaming commerce is captivating audiences and transforming how consumers shop. Countries like China are at the forefront of this trend, with live-streaming events racking up billions of dollars in sales within just hours. This format combines entertainment with commerce, allowing brands to showcase products while engaging viewers in real time. One moment shoppers are catching a glimpse of a trendy handbag, and the next they’re in on a lively Q&A about its features—not your average shopping experience!

    Asia’s Retail Arena: A Feast for Innovation

    Retailers throughout Asia are seizing this opportunity to enrich customer engagement. Brands are harnessing influencers and charismatic presenters to enhance the entertainment factor, driving traffic and sales through these events. For instance, in Hong Kong, a popular cosmetics brand recently hosted a live-streaming session that not only showcased new products but also featured well-known beauty experts, pulling in thousands of views and a considerable spike in sales.

    Bridging Online and Offline Experiences

    As online and offline retail environments blend, brands are increasingly focused on creating seamless shopping experiences. Retailers are integrating technology, such as augmented reality and AI, to offer personalized recommendations. Imagine trying on clothes virtually through your smartphone — a prospect that’s no longer just a futuristic concept but a reality for many retailers.

    The Impact on Supply Chains and Beyond

    However, this shift isn’t without its challenges. As retailers amplify their online strategies, supply chains must adapt to cope with the swift transitions between virtual engagement and real-world purchases. The pressure is on to optimize inventory and logistics to prevent the dreaded “out of stock” message from surfacing during high-demand live-streams.

    The interplay of technology and retail is indeed a delicate dance, and Asia is falling in step with aplomb. With shoppers eager for more engaging experiences, as they say, “the best is yet to come.”

    Questions & Answers

    What is live-streaming commerce?
    Live-streaming commerce combines entertainment and e-commerce, allowing brands to showcase products while engaging live with viewers, often resulting in immediate sales boosts.

    How are retailers in Asia adapting to this trend?
    Retailers in Asia are enhancing customer engagement by utilizing influencers, interactive features, and integrating technology like augmented reality to create richer shopping experiences.

    What challenges do retailers face with the growth of live-streaming?
    The rapid shift to online sales has put pressure on supply chains, requiring retailers to optimize logistics and inventory to meet heightened demand during live-stream events.

  • China’s Xiaomi bets bigger on India retail stores amid Samsung rivalry

    China’s Xiaomi bets bigger on India retail stores amid Samsung rivalry

    China’s Xiaomi 1810.HK will focus on boosting its India sales from retail outlets after years of big bets on e-commerce, its India president said, as the company seeks to revive smartphone sales after falling behind South Korea’s Samsung 005930.KS.

    E-commerce sales in India via Amazon AMZN.O and Walmart’s WMT.N Flipkart have surged in recent years, helping Xiaomi and others expand in one of the world’s fastest-growing markets, with 600 million smartphone users.

    But while 44% of India’s smartphone sales are now online, the brick-and-mortar segment remains the bigger play and Xiaomi expects it to grow further.

    “Our market position in offline is substantially lower than what it is online,” Xiaomi’s India head, Muralikrishnan B., said in an interview on Friday. “Offline is where you have other competitors who have been executing fairly well and have a larger market share.”

    Just 34% of Xiaomi’s India unit sales this year have come from retail stores, with the rest through websites that have long been its dominant sales generator, data from Hong Kong-based Counterpoint Research shows. Samsung, in contrast, gets 57% of its sales from stores.

    Xiaomi plans to expand its store network beyond the current 18,000 and increasingly partner with phone vendors to offer other products, such as Xiaomi TVs or security cameras, where Muralikrishnan said competition is less intense.

    He said Xiaomi found some partner stores that put its bright orange branding outside shops were displaying rival brands more prominently inside, a marketing issue the company would address.

    Xiaomi’s offline push comes months after it lost its leadership position to Samsung, which had a much bigger portfolio of premium phones now in vogue. The South Korean giant has a 20% market share in India, while Xiaomi, which historically focussed on budget phones, has 16%.

    “Offline remains a key platform as India embraces the premiumization trend,” said Counterpoint analyst Tarun Pathak. “Consumers spending more would like to have the look and feel of the premium product.”

    Xiaomi plans to hire more store promoters – salespeople who lure, pitch and sell phones to prospective buyers inside outlets. It targets tripling the count to 12,000 promoters by the end of next year from early 2023 levels, Muralikrishnan said.

    Another significant India challenge for Xiaomi is a federal agency’s $673 million freeze on its bank assets since last year. The agency alleges Xiaomi made illegal remittances to foreign entities in the name of royalties. The company denies wrongdoing.

    “We’ll continue to be confident … that ultimately our position will be heard and validated,” Muralikrishnan said.

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  • Samsung steals Xiaomi’s crown in India’s premium smartphone market

    Samsung steals Xiaomi’s crown in India’s premium smartphone market

    Xiaomi Corp is reviewing its India strategy after misjudging consumer tastes for mobile phones. This costly mistake allowed Samsung Electronics to lead the Chinese company to the top spot in the world’s second-largest market for these devices.

    While Xiaomi continued to focus on selling mobile phones below Rs 10,000 ($120), Indian consumers were willing to pay more for better-looking models with richer features. Samsung of South Korea launched products that met those aspirations and offered innovative financing schemes that made them affordable for most.

    These measures have helped Samsung take the lead of the Indian mobile phone market from Xiaomi. Data from Hong Kong-based Counterpoint Research shows that Samsung had a market share of 20% in the last quarter of 2022, compared to 18% for the Chinese company.

    “The Indian market is witnessing a ‘premiumization’ trend. (But) Xiaomi is underprepared for this shift with a portfolio full of cheap phones,” said Tarun Pathak, research director at Counterpoint.

    The loosening of Xiaomi’s grip on India’s 626 million smartphone users – the largest after China – shows how companies that fail to respond to changing consumer preferences are penalized in a fast-growing economy with rising disposable incomes.

    Best known in India is Tata Motors’ Rs 100,000 ($1,200) Nano, which was heralded as the world’s cheapest car, shunned by consumers who associated its low price tag with inferior quality.

    Indians’ demand for more expensive mobile phones to consume videos and other content is also beneficial for social media app providers like Meta, and iPhone maker Apple Inc, which so far has a small market share in the country as it focuses exclusively on high-end phones, with prices ranging from $605 to a whopping $2,304, according to its website.

    According to Counterpoint, the market share of the phones under $120 in India has fallen to 26% by 2022, from 41% two years ago. And premium phones – above 30,000 ($360) – saw their share double to 11% over the same period.

    Xiaomi and Samsung both view India as a major growth market, with smartphones being their top-selling electronic device. The Chinese company posted a total revenue of $4.8 billion in India in 2021-22, while Samsung posted $10.3 billion in revenue, of which $6.7 billion came from smartphones.

    However, Xiaomi is already struggling in India with the departure of at least five top executives and increased government scrutiny over frosty relations with neighboring China. The company has had $674 million frozen by the country’s Financial Crime Bureau over alleged illegal remittances to foreign entities, which Xiaomi denies.

    A Reuters review of the product listings on Xiaomi’s website revealed the mismatch between consumer needs and the products the company offers. Xiaomi had six smartphones priced over $360, compared to Samsung’s 16. Under $120, Samsung had seven models, while Xiaomi had 39 – most of which turned out to be out of stock.

    And premium phones accounted for just 0%-1% of total shipments of Xiaomi’s Indian phones over the past two years, while the share of Samsung’s more expensive phones more than doubled to 13%, according to data from Counterpoint.

    But Xiaomi, which has admitted to introducing “too many” models in the past, is revamping its product line to focus on premium smartphones.

    In January, the company launched the Redmi Note 12 with a top price of over Rs 30,000, and recently launched the Xiaomi 13 Pro at Rs 79,999 ($970) – its most expensive phone in India. The strategic shift seems to have paid off immediately, as the Redmi Note 12 posted sales of $61 million within two weeks of its launch.

    “We have established a streamlined and cleaner portfolio with a focused approach to build expertise in the top segment, and the launch of our latest flagship, the Xiaomi 13 Pro, is a step in that direction,” said Indian President Muralikrishnan B.

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  • Xiaomi Demands Payout From Supplier After Car Designs Leaked

    Xiaomi Demands Payout From Supplier After Car Designs Leaked

    China’s Xiaomi said on Thursday it had imposed a 1 million yuan ($149,000) penalty on a supplier after it leaked early design drafts of an upcoming car model.

    On its official Weibo page, a spokesperson wrote Xiaomi had “dealt seriously” with a Beijing-based molding technology company which on Jan. 22 publicly revealed images of an upcoming car’s front and rear bumpers, violating a confidentiality agreement.

    Xiaomi did not disclose the name of the company and we could not identify it.

    As punishment, the smartphone-turned-car maker said it would impose “economic compensation” of 1 million yuan ($148,763) on the supplier.

    The spokesperson added it had instructed the supplier to strengthen its information security management, and develop plans to upgrade its confidentiality measures.

    Xiaomi CEO Lei Jun also circulated the note on his personal Weibo page.

    Over the Chinese New Year, images purportedly showing mock ups of the front and rear of Xiaomi’s upcoming electric vehicle (EV) spread on social media, as well as a full view of what appeared to be a white compact sedan, with a license plate that read “MS11”.

    The leaks would mark the first confirmed images of Xiaomi’s long-awaited automobile.

    However, News portal Sina Tech reported on Thursday that Wang Hua, general manager of Xiaomi’s public relations department, said the leaked designs were part of a bidding process and were not final renderings.

    In March 2021 Xiaomi, a hardware company best known for its smartphones, said it would enter the automotive sector, aiming to invest $10 billion in the project over ten years.

    Since then, the company has committed to opening a plant in Beijing that could produce 300,000 vehicles per year.

    The company has said it hopes to reach mass production of its cars in the first half of 2024.

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