Xiaomi Aims to Double Device Shipments in India to 700 Million Over Next Decade: President Muralikrishnan B

Bengaluru: Chinese smartphone maker Xiaomi plans to double its product shipments in India to 700 million over the next 10 years, according to a senior company official. On the 10th anniversary of Xiaomi’s operations in India, company President Muralikrishnan B announced that Xiaomi has shipped 250 million smartphones in the last decade, with a total of 350 million units across all product categories.

Ambitious Future Goals

“I’m delighted to share that in the past 10 years, Xiaomi has shipped 250 million smartphones and 350 million devices overall in India, covering the period from 2014 to 2024. Looking ahead, we aim to double our shipments to 700 million devices in India,” Muralikrishnan told PTI in an interview.

Expanding Local Manufacturing

He also mentioned that Xiaomi is considering manufacturing AI-based Internet of Things (IoT) devices in India and is discussing making its tablets locally.

“We currently manufacture smartphones, smart televisions, and audio products in India. We’re exploring opportunities to localise various other AI IoT products and deepen our competence in India. We’ve already sourced simpler products like battery charger cables locally,” Muralikrishnan added.

Strategic Partnerships

Xiaomi has partnered with companies like Dixon Technologies, Foxconn, Optiemus, and BYD to produce devices in India.

“In terms of component localisation, we aim to broaden and deepen our efforts. Currently, local non-semiconductor components make up 35% of our total bill of materials (BOM). We expect this to increase to 55% in the next two years,” Muralikrishnan stated. He acknowledged that achieving higher local value addition in electronic product manufacturing is challenging in India due to the lack of electronic components. “Our domestic value addition was 18% in FY 2023, and we aim to increase this to 22% by FY 2025 by focusing on the component ecosystem,” he said.

Market Share and Competition

Research analysts have varying estimates of Xiaomi’s smartphone market share in India for the March 2024 quarter. Cybermedia Research estimates it slightly behind Samsung at 18.6%, Counterpoint Research projects it at 10%, and IDC pegs it around 13%. Despite these differences, all three leading research firms agree that Xiaomi is among the top four smartphone brands in India.

Counterpoint Research also estimates that Samsung has replaced Xiaomi as the top player in the smart TV segment in the March quarter, with Samsung’s share at 16%, LG’s at 15%, and Xiaomi’s at 12%.

Muralikrishnan acknowledged the company’s challenges during COVID-19, which led to a decline in market share. “We viewed 2023 as a year to reset, refresh, and recharge. We recalibrated our strategy and regained growth momentum in the second half of 2023. We’ve grown substantially faster than the market,” he said.