Xiaomi plans to double product shipments to 700 mn in India over next 10 years

Bengaluru: A senior official from Xiaomi, a Chinese smartphone manufacturer, stated on Monday that the company plans to increase its device shipments in India to 700 million over the next decade, doubling the current number.

During the celebration of Xiaomi's 10 years in India, President Muralikrishnan B announced that the company had sold 250 million smartphones and 350 million units of all products in the last decade.

I'm thrilled to announce that in the last decade, Xiaomi has delivered 25 crore smartphones, 250 million smartphones, and a total of 35 crore devices in various categories in India. This falls within the time frame of 2014 to 2024. Muralikrishnan stated in an interview with PTI that they aim to double their shipment to 700 million devices in India in the next 10 years. He mentioned that the company is considering beginning production of IoT devices based on artificial intelligence in India, and discussions are underway to manufacture its tablet locally.

We possess smartphones, smart televisions, and audio products manufactured in India. We are also looking into chances to adapt numerous other AI IoT products for specific regions. We are dedicated to expanding and strengthening skills localization in India. Muralikrishnan stated that simpler products or only battery charger cables have been sourced in India previously. Xiaomi has collaborated with Dixon Technologies, Foxconn, Optiemus, BYD, among others, to manufacture devices in India.

"In reference to the localization of components, we will expand further and delve deeper." 35% of our total bill of material (BOM) consists of non-semiconductor components that are locally sourced. Muralikrishnan said he anticipates that figure will increase to 55 percent over the next two years.                                                                            

One of India's major hurdles is the lack of electronic components in achieving greater local value addition in manufacturing electronic products. Muralikrishnan stated that domestic value addition was 18 percent in FY2023 and they aim to increase it to 22 percent by FY25 through enhancing the component ecosystem.

Research analysts had varying opinions on Xiaomi's smartphone market share in India during the March 2024 quarter. According to Cybermedia Research, it is slightly behind Samsung with 18.6 percent, Counterpoint Research forecasts it at 18.8 percent, and IDC estimates it to be around 13 percent. Yet, Xiaomi is believed by all three major research companies to be one of the top four smartphone brands in the nation.

Counterpoint's data shows that Samsung overtook Xiaomi as the leading player in the smart TV market in the March quarter. Samsung accounts for approximately 16 per cent of the market share, while LG holds 15 per cent and Xiaomi holds 12 per cent. Muralikrishnan mentioned that the company faced difficulties during COVID-19 with a decrease in market share.

We viewed 2023 as a time for resetting, rejuvenating, and reenergizing. We readjusted our approach and regained growth momentum in the latter part of 2023 by returning to the path of growth. He stated that we have experienced a much quicker rate of growth compared to the market.