Xiaomi challenges Samsung on its home turf, puts pressure on South Korean market
Xiaomi managed to outrace Samsung on the Indian market and now it’s bringing the fight to South Korea. The Xiaomi Redmi Note 5 was part of the company’s winning line-up on the Indian market and now it was officially launched last week in Korea as well.
Priced at KRW200,000-300,000 ($190-285), the Redmi Note 5 will be available from local carriers SK Telecom and Korea Telecom (LG Uplus is not carrying it). With its six-inch screen, 12MP main camera, five-megapixel front-facer, and AI enhancements, the Redmi Note 5 is Xiaomi’s hope on an already saturated market. In South Korea 99% of the market is dominated by Samsung, Apple, and LG. Samsung is the leader with a 55% share, followed by Apple at 28.3% and LG Electronics at 15.7%.
However, Xiaomi has an aggressive pricing policy with lower margins for profit, at 5%, which is exactly what allows the Chinese smartphone maker to grow so fast and disrupt the status quo on markets it decides to conquer.