Just a few days back, Xiaomi – the maker of Redmi and MI range smartphones announced something unexpected and unforeseen – Redmi splits up and becomes an Independent brand. Yes! The news is true: The Chinese smartphone maker decided to make ‘Redmi’ an ‘independent brand’. Though the reasons have not been disclosed yet, this ‘split’ makes Redmi – originally launched as a ‘budget smartphone‘ line in 2013; makes it a subsidiary of Xiaomi.
We have seen this happening earlier as well. Smartphone manufacturing companies have promoted sub-brands agenda to push their sales. A lot many brands such as Oppo with its sub-brand Realme, and Huwaei with its Honor arm tried this in the past and surprisingly made it work wonders for them. Thus, all we could do is hope it works for Xiaomi and Redmi too.
Moving on to whether this move will favour the customers or not; much can’t be said until the independent Redmi phones don’t make their way into India. Till then, here’s what some of the experts think about Xiaomi and Redmi split up and what it would mean to the customers?
- With Redmi, especially in India, Xiaomi will serve budget-conscious customers. Taking a cue from the same, we can say the new Redmi smartphones will be something to watch out for. Talking about the same, the Redmi has left no stone unturned with its first independent device Redmi Note 7 – announced in China on the 10th of January.
- Redmi, now, will focus only on budget smartphone. As CEO Lei Jun believes, Redmi brand deals with devices in the budget segment. However, the Mi band of smartphones was shifting the focus of the brand towards more high-end devices. He further added, the Redmi devices heavily rely on e-commerce outlets for selling and availability. On the contrary, the Mi devices are not necessarily e-commerce focused.
Xiaomi and Redmi future aspirations
The Xiaomi and Redmi split have allowed the manufacturers to become more adventurous with regards to their products. This is clearly visible with the release of their latest 48 Megapixel smartphone following the split. Also, if rumours are to be believed, Xiaomi is soon planning to launch a three-panel foldable smartphone while their Poco range of smartphones are already competing with the likes of Samsung and Huawei in the premium smartphone segment.
Has this split influenced the sales of Xiaomi?
The answer is obviously a yes. As per International Data Corporation (IDC), the Chinese smartphone manufacturer shipped approximately 11.7 million units in India last year and the top brand. Xiaomi’s current market share as of 2018 third quarter was 27.3 per cent.
Not just that, talking about collective sales figures in Indian as well as European market which is the second stronghold of Xiaomi, 49.1 per cent year-on-year increase in revenue was reported for its third quarter of 2018. With this, the net profit reached 2.48 billion yuan ($357.23 million).