Xiaomi Aims for 200 Million Units: High-End Strategy Crucial in 2027 Three-Giant Challenge

Xiaomi Aims for 200 Million Units: High-End Strategy Crucial in 2027 Three-Giant ChallengeXiaomi Group Partner and President, Lu Weibing, recently revealed in an interview that Xiaomi is approximately 30 million units short of its global sales target of 200 million. The company projects sales of around 170 million units in 2024

Xiaomi Aims for 200 Million Units: High-End Strategy Crucial in 2027 Three-Giant Challenge

Xiaomi Group Partner and President, Lu Weibing, recently revealed in an interview that Xiaomi is approximately 30 million units short of its global sales target of 200 million. The company projects sales of around 170 million units in 2024. Xiaomi plans to achieve its 200 million unit global sales target within 2-3 years, by 2027 at the latest.

Lu Weibing predicts a clear tiered structure in the global smartphone market by then: a 200-million-unit tier comprising Xiaomi, Apple, and Samsung; a 100-million-unit tier potentially including two to three manufacturers; and the remaining manufacturers with sales below 50 million units. This foreshadows intensified competition and a reshaping of the market landscape.

However, Lu Weibing emphasized that product structure, particularly high-end progress, is more critical for Xiaomi than sheer sales volume. He noted differing high-end strategies for domestic and overseas markets. In China, Xiaomi targets the RMB 4,000 price point as the entry to its high-end strategy, currently holding a significant market share in the RMB 4,000-6,000 segment. However, there's significant room for improvement in the ultra-high-end market above RMB 6,000, which Xiaomi will prioritize over the next 3-5 years.

Overseas, Xiaomi focuses on consolidating its position in the $600-$1,000 price segment. For the higher-end market above $1,000, Xiaomi relies on flagship models like the Xiaomi 15 Ultra, adopting a more cautious and stable approach.

Xiaomi achieved a record 190 million global sales in 2021, but subsequent market downturn impacted sales, with figures reaching 150 million in 2022 and 146.4 million in 2023. Despite the decline, Xiaomi remains among the top three globally and holds the leading position among Chinese smartphone brands.

Lu Weibing's statement clearly outlines Xiaomi's future strategy: a high-end strategy to overcome sales bottlenecks, challenge the top three global smartphone manufacturers, and ultimately reach the 200 million unit sales target. This requires continued efforts in R&D, technological innovation, brand building, and marketing.

Xiaomi has made progress in its high-end strategy. The launch of its flagship Xiaomi digital series and breakthroughs in imaging and fast-charging technologies have enhanced competitiveness, gaining recognition from high-end consumers. However, the high-end market is fiercely competitive, with Apple and Samsung possessing strong brand recognition and technological prowess. Xiaomi needs further effort to make greater inroads.

The challenge lies not only in technology but also in brand perception. Xiaomi's long-standing reputation for value-for-money creates a "high cost-performance" image, hindering its high-end aspirations. Shifting this perception and establishing a premium brand image is crucial for effective competition with Apple and Samsung. This requires comprehensive adjustments in product design and marketing strategies to better meet the needs of high-end consumers.

Expanding into overseas markets is also vital. While Xiaomi has achieved considerable global success, its overseas influence lags behind Apple and Samsung. Strengthening brand building and enhancing product localization are crucial for expanding market share.

In conclusion, Xiaomi's journey to a 200 million unit sales target and challenging the top three global smartphone manufacturers presents both challenges and opportunities. The high-end strategy is its core competitive advantage. Success in surpassing the RMB 6,000 price point and further expanding in overseas markets will be key to its future. Whether the 200 million unit target by 2027 is achieved remains to be seen, but Xiaomi's ambition and strategic adjustments provide a strong impetus. Its progress in the coming years, particularly in the high-end market, will significantly impact the entire smartphone industry, affecting not only Xiaomi's growth but also the global influence of Chinese smartphone manufacturers.