[Asia Economy Reporter Joeslgina] Xiaomi, nicknamed the "Mistake of the Continent," has intensified its push into the Korean market, joining the mid-range smartphone assault alongside Samsung Galaxy A series, LG Velvet, and Apple iPhone SE. Following the LTE smartphone Redmi Note 9S, the 5G smartphone Mi 10 Lite, priced in the 400,000 KRW range, will also be launched next month through domestic mobile carriers.
According to industry sources on the 30th, Xiaomi officially launched the Redmi Note 9S the day before, marking the first time in two years since 2018 that the company is selling its products through domestic carriers. Previously, Xiaomi smartphones were only sold unlocked through online shopping malls, but with carrier releases, the connection with Korean consumers has expanded.
The Redmi Note 9S, priced between 264,000 KRW and 299,000 KRW, was highly popular, selling out 2,000 units in a limited pre-order sale within two days before its release. With carriers' official subsidies and additional support funds combined, it is possible to purchase the phone for just over 100,000 KRW.
Having effectively designated 2020 as its inaugural year in the Korean market, Xiaomi plans to release the 5G smartphone Mi 10 Lite next month, featuring a 6.57-inch AMOLED display and a quad-camera setup. An industry insider said, "The release date is under discussion," adding, "Channels for release and subsidies have not been finalized." This will be the first time a foreign manufacturer’s 5G smartphone is sold domestically in Korea.
The Mi 10 Lite is an entry-level model of the Mi 10 series and was previously launched in Europe at a price range of 300 to 400 euros (approximately 400,000 to 500,000 KRW). It became a hot topic after selling over one million units within two months of its release.
With Xiaomi’s entry, competition in the mid-range and budget smartphone segment, which has intensified in the domestic market since this month, is expected to heat up further. The Korean market is known as a "graveyard for foreign phones" among overseas smartphone manufacturers due to its high barriers. However, Xiaomi, which has expanded its presence in overseas markets such as India, plans to compete in the domestic mid-range smartphone market by combining cost-effectiveness with localization strategies.
Since the outbreak of COVID-19, mid-range smartphones have been gaining strength in Korea. The recently released Samsung Galaxy A51 5G model has a retail price of 570,000 KRW, and the Galaxy A Quantum, a quantum security 5G phone launched in collaboration with SK Telecom, is priced at 659,000 KRW. LG Electronics’ LG Velvet is also competitively priced in the high 800,000 KRW range compared to flagship models. Apple has released the iPhone SE, a budget model priced in the 500,000 KRW range, for the first time in four years.
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