KT M Mobile Introduces New Xiaomi Device to Budget Phone Market
Initial Supply of 100 Redmi Note 14 Pro Units
"Affordable Devices and Plans"
Targeting Cost-Effectiveness in the 10 Million Subscriber Budget Phone Market
Xiaomi, which announced its entry into the domestic market, has partnered with KT’s budget phone service. This move is seen as an initial strategy to emphasize 'cost-effectiveness (performance relative to price)' in the Korean smartphone market.
According to industry sources on the 23rd, KT M Mobile, the second-largest budget phone operator, began selling Xiaomi’s newly released AI smartphone, the Redmi Note 14 Pro 5G, bundled with budget phone plans starting from the 22nd. The initial stock of Redmi Note 14 Pro sold by KT M Mobile is about 100 units, with plans to increase the quantity based on market response.
The reason Xiaomi teamed up with a budget phone operator is to maximize the advantage of both affordable devices and plans. A KT M Mobile official stated, "If you sign a 2-year contract and use a monthly plan costing 21,000 KRW, you can get the Redmi Note 14 Pro device, priced at 400,000 KRW, for free." The three major carriers also started selling the same model on the same day, but customers must subscribe to a 55,000 KRW monthly plan for two years to buy it for 70,000 KRW. Compared to budget phones, this is a higher cost burden.
This is not the first time a budget phone operator has sold Xiaomi smartphones. In the past, some operators sold them in the form of general distributors (importers). What has changed now is that sales are conducted through official contracts. A Ministry of Science and ICT official explained, "With previous general distributors of foreign phones, consumers had difficulty receiving compensation when issues occurred during sales. Now, purchasing through telecom operators’ distribution networks, which have official contracts with Xiaomi, means the telecom company takes responsibility, which is advantageous for consumers."
Industry insiders see this contract as a milestone for the sale of foreign devices in the budget phone market. Korea is often called the ‘graveyard of foreign phones’ because, aside from Apple’s iPhone, there have been no overseas smartphones preferred by consumers. The IT industry estimates that foreign phones other than the iPhone hold less than 1% of the domestic market share.
Ha Chang-jik, Secretary-General of the Korea Budget Telecommunications Operators Association, said, "About 80% of budget phone subscribers use only SIM cards without devices," adding, "In a situation where budget phone operators focus solely on selling plans, securing this level of contract for new devices is a meaningful achievement."
A telecom industry official said, "The Redmi 14 Pro, equipped with AI features, is competitive in terms of functionality, and combined with budget phone plans, it offers high cost-effectiveness," adding, "It’s worth trying to compete in the budget phone market with 9.5 million subscribers." However, the official also noted, "It will have to compete with mid-range phones like Samsung Electronics’ Galaxy A35, and overcoming the image of being a Chinese product remains a challenge."
Xiaomi established its Korean subsidiary on the 15th and announced plans to expand its distribution network. It plans to open an after-sales service (AS) center within the first half of this year to address weaknesses and to open offline stores in Seoul. On its own mall, Xiaomi has been selling the mid-range smartphone Redmi Note 14 Pro 5G (400,000 KRW) and Xiaomi 14T (600,000 KRW) in an unlocked form since the 22nd.
On its own mall, Xiaomi has been selling the Xiaomi 14T (600,000 KRW) and the mid-range smartphone Redmi Note 14 Pro 5G (400,000 KRW) in an unlocked form since the 22nd.
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