Xiaomi's 'Redmi Note 10' Free Phone Strategy... Targeting the Vacancy Left by LG Phones

Xiaomi 'Redmi Note 10 Pro (Hongmi Note 10 Pro)'

[Asia Economy Reporter Eunmo Koo] As LG Electronics officially announces its withdrawal from the smartphone market, Chinese company Xiaomi is targeting the domestic smartphone market with a strategy of increasing official subsidies on affordable entry-level products.

According to the telecommunications industry on the 10th, Xiaomi introduced the basic model ‘Redmi Note 10 (Hongmi Note 10)’ to the domestic market on the 30th of last month with a retail price of 218,900 KRW, and the day before yesterday officially launched the higher-end model ‘Redmi Note 10 Pro (Hongmi Note 10 Pro)’ at a retail price of 319,000 KRW.

Although these are newly introduced models, Xiaomi is competing on price competitiveness by lowering the retail price and increasing official subsidies, effectively promoting them as ‘free phones.’ LG Uplus set the official subsidy for the Redmi Note 10, priced at 218,900 KRW domestically, at 191,000 KRW for all plans. Additionally, when combined with extra subsidies from distribution channels such as retailers and agencies, which can add up to 15% of the official subsidy, the actual purchase cost can be ‘0 KRW.’ SK Telecom also set the official subsidies for the Redmi Note 10 series between 90,000 and 140,000 KRW, and considering additional subsidies, the purchase price ranges from 50,000 to 150,000 KRW depending on the model.

Aside from the affordable price, the performance of this series shows improvements compared to the past. The higher-end Redmi Note 10 Pro is equipped with a quad (4) camera setup including a 108-megapixel rear camera, significantly enhancing camera capabilities. It features a 6.67-inch AMOLED dot display supporting a 120Hz refresh rate (frames per second), improving the display quality. The application processor (AP) uses Qualcomm’s Snapdragon 732G, and it offers a large 5020mAh battery with 33W fast charging.

The Redmi Note 10 is also equipped with a quad camera setup including a 48-megapixel main camera, an 8-megapixel ultra-wide camera for group shots, a 2-megapixel macro camera for close-ups, and a 2-megapixel depth sensor for portrait photos. The AP is Qualcomm Snapdragon 678, with a 6.43-inch AMOLED dot display and a 5000mAh battery. Both models apply an arc side-button fingerprint sensor.

Earlier, Steven Wang, Xiaomi’s General Manager for East Asia, introduced this series by stating, “The Redmi Note 10 series is the first in the Redmi Note lineup to feature an AMOLED display,” and added, “It offers the best cost-effectiveness to provide customers with a satisfying experience.”

With the launch of the Redmi Note 10 series, Xiaomi also expanded consumer accessibility by increasing sales channels. Until last year, purchases were only possible through official distributors and some telecom operators’ online malls, but this time, the phones can be bought not only from SK Telecom and LG Uplus online shops but also from open markets such as Auction, Gmarket, 11st, Wemakeprice, and self-supplied channels like MVNOs.

However, it seems unlikely that Chinese products, which do not have high trust in the domestic smartphone market?often called the ‘graveyard of foreign phones’ except for Apple?will easily fill the void left by LG Electronics. The domestic supply volume of the Redmi Note 10 series is estimated to be around 20,000 to 30,000 units, and the sales volume of previously released models has been minimal. Currently, Huawei, Oppo, and Vivo do not sell smartphones in Korea.