1. Xiaomi moves aggressively into low end of mobile sector
Xiaomi's new low-cost smartphone – at 799 RMB – is set to unsettle an already fiercely
competitive market for cheap mobile phones in China.
On
12
August
Xiaomi
launched
its
first
batch
of
the
sub-­‐brand
"Hongmi"
(red
rice)
phone,
targeting
the
country's
entry-­‐level
smartphone
buyers.
With
rumors
circulating
that
Apple
will
introduce
cheaper
iPhones
for
Chinese
clients
in
the
second
half
of
2013,
Beijing-­‐
based
Xiaomi
has
moved
quickly
to
beat
its
rivals
to
the
punch
in
the
lower-­‐end
market.
The
Hongmi
smartphone,
priced
at
799
RMB
($130)
has
a
4.7-­‐inch
screen,
uses
Android
and
is
equipped
with
MediaTek
Inc's
1.5-­‐gigahertz
quad-­‐core
processor.
The
dual-­‐card
handset
supports
China
Mobile
Ltd's
second-­‐generation
(2G)
and
third-­‐generation
(3G)
networks.
Xiaomi
officials
are
reported
as
saying
that
the
launch
is
a
preemptive
move
to
prepare
for
the
expected
price-­‐cut
trend.
Xiaomi
has
until
now
operated
in
the
middle
and
high
ends
of
the
smartphone
market,
but
the
entry-­‐level
market
boasts
many
more
potential
buyers.
According
to
data
from
Alibaba,
China's
e-­‐
commerce
giant,
61
percent
of
mobile
phones
sold
on
Taobao.com
and
Tmall.com
were
priced
below
1,000
RMB.
About
one-­‐
fifth
of
mobile
phones
sold
cost
1,000
RMB
to
2,000
RMB,
while
only
18%
cost
more
than
2,000
RMB.
From
South
China
Morning
Post
For
more
information
contact
Christian
Brüel
christian.bruel@schultz-­‐co.com