Muralikrishnan B, President at Xiaomi India

Smartphone giant Xiaomi aims to ship around 70 crore devices in the country in the next decade, said Muralikrishnan B, President at Xiaomi India.

“We aim to be the largest telecom ecosystem not just globally, but also in India. When I look ahead at the next 10 years of India and Xiaomi India, it is a decade of opportunity and impact,” said Murali.

Currently, the company says it has shipped 35 crore devices in India, which includes 25 crore smartphones. Globally, the smartphone major spends five percent of its total revenue on R&D.

The company is looking to add more products to its current portfolio that are manufactured in India. In terms of the non-semiconductor BoM (bill of materials) of the phone, which currently stands at 35 per cent, will become 55 per cent by the end of 2025.

“Over the next two years, with our strategy to broaden and deepen the company localisation ecosystem, we expect that number to go up,” he said.

Muralikrishnan also explained that the trend of premiumisation has impacted the downstream price segments, including entry-level and mid-range smartphones, elevating the average selling price of smartphones from ₹8,800 in 2014 to ₹20,800 in 2024.

“The domestic valuation at the end of 2023 for smartphones was about 18 per cent. We want to focus on broadening and deepening this component ecosystem and expect to take that number to 22 per cent in domestic value addition by 2025,” he added.

Market leaders

As of the quarter ending March 2024, Samsung remained the top smartphone brand in India, shipping 6.7 million units and capturing 19 per cent market share, followed by Xiaomi and Vivo with 18 per cent share each. Oppo and Realme completed the top five with 13 per cent and 9 per cent market share respectively.

Muralikrishnan spoke about how a single-product brand is no longer a viable option as consumers are looking for a better and all-rounded experience.

“They want a connected ecosystem experience and we are looking to invest in our core tech across various segments,” he added.

“Product is our passion, but efficiency is in our DNA. And this has enabled us to succeed not just in the smartphone category, but across television, tablets, EV cars, home appliances, and more power in this connected ecosystem. Having a great product is good, but unless you can get that message across to the audience in a captivating way, it’s not enough,” said the President.

Published on July 8, 2024