Xiaomi - with its 'Mi' brand - has seen significant growth in the mid and premium smartphone segment over the past few quarters, and captured 14-15 percent market share in Rs 20,000-45,000 segment, according to Xiaomi India Managing Director Manu Jain.
Speaking to PTI, Jain said the company had decided to have a separate positioning for 'Mi' and 'Redmi' around the end of 2019 as demand for high-end devices started picking up.
"The industry ASP (average selling prices) has been consistently growing. When we started in 2014-15, the market ASP used to be Rs 6,000-7,000. By 2017, it was around Rs 10,000. In 2019, it was Rs 12,000 and now it is around Rs 13,000-15,000...so more and more people are planning to buy more high-end devices -- Rs 20,000 and above," he explained.
He added that devices priced at Rs 20,000 and above account for more than 10 percent of the Indian market currently from around 6 percent in 2016.
People looking to upgrade to more powerful devices, availability of financial programmes like EMIs and increasing penetration of e-commerce are some of the aspects that have helped in the growth of the Rs 20,000 and above category.
Jain said Xiaomi focussed on three factors for its premium range -- great specs and premium design, cutting-edge technology and a consumer experience that is free of ads and recommendations.
"Our market share has jumped seven times in last six months in the Rs 20,000-45,000. We used to be 2-3 percent market share and then we grew to 6 percent and 12-13 percent. In March we saw a decline because we couldn't supply because second wave of COVID was starting. Since then we have hit 14-15 percent market share," he added.
Jain said the company was the third largest player (after Samsung and OnePlus) in the segment in April.
While "these are early signs", the company has a "long way to go" in this segment, he added.
The overall smartphone shipment in India grew a record 23 percent in the March 2021 quarter to reach over 38 million units. Xiaomi led the market with 26 percent share, followed by Samsung (20 percent share), Vivo (16 percent), Realme and Oppo (26 percent share each).
Jain noted that Xiaomi used to launch one product a year in the premium category, but last year it launched 3 products and added 5 products in the first half of this year.
It is also bringing in its most expensive smartphone -- Mi 11 Ultra -- to the Indian market. The device will go on sale on July 17, 2021.
Over the past few months, Xiaomi has announced sales figures for its phones under the Mi brand. The Mi 11 Lite smartphone crossed sales worth over Rs 200 crore within the first week of its launch, while Mi 11X series recorded sales worth over Rs 300 crore in just 45 days of launch. Mi 10i also clocked Rs 200 crore in sales during its first sale.
The top executive said about 40-45 percent of the mobile phones in the Rs 20,000 plus category are sold online, and that the company's strong presence across both online and offline channels has helped strengthen its position in this segment.