Xiaomi Didn't Get the Big Device Memo

Reveals Its New Mi 6 Flagship Phone


On Wednesday at an event in Beijing, Xiaomi unveiled its latest flagship smartphone, the Mi 6. Xiaomi added new features, raised the price but kept the phone's display size the same as its predecessor, the Mi 5, despite market trends of bigger screens and smaller bezels.

Overall the Mi 6 is an impressive device: it runs Android 6.0, features Qualcomm's Snapdragon 835 chipset, dual 12-megapixel cameras on the rear, an eight-megapixel front-facing camera and a stainless steel frame. Xiaomi claims the dual cameras help create high-quality pictures even at full zoom. The new device ships with 64GB or 128GB of on-board storage.

Xiaomi resisted market momentum by keeping the display size of its new flagship model the same. For example, Samsung's flagship phone of 2016, the Galaxy S7, has a 5.1-inch display. Its successor, the S8, features a 5.8-inch "Infinity" display. In our view, Xiaomi needed to balance new features with the cost of materials and decided to concentrate on imaging and processing technology, potentially differentiating on size in an inevitable "Plus" variant.

The Mi 6 phone will begin shipping in China on 28 April at a starting price of 2,499 yuan (about $363), considerably more expensive than its predecessor, the Mi 5, which had a starting price of 1,999 yuan (about $290). The price difference reflects the fact that suppliers of key components, particularly displays and memory, have pricing power in their favour. Xiaomi's loss of scale is also likely to have been a factor.

Xiaomi has made its past success a textbook example. It became a top-five global smartphone supplier within three years of entering the market through a strategy of innovative marketing, competitive pricing and piggybacking on current popular styles. Xiaomi's first phone, the attractively priced Mi-1, resembled other products on the Chinese market, which were much desired but out of reach for many consumers.

Xiaomi has received criticism during the past year for failing to continue to grow. It has seen sales in its domestic market of China fall, thanks to pressure mainly from other Chinese rivals like Oppo and Vivo. Hedging its bets, Xiaomi tried to expand to other markets, but this proved complicated. There was always little doubt that its success couldn't be replicated easily across many markets. Xiaomi can claim some success in India, but expansion to the West seems out of the near-term plan for now.

This entry was posted on April 21st, 2017 and is filed under Devices. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Posted By Raghu Gopal On April 21st, 2017


Comments
(There are no comments yet)
Leave a Comment

Hot News

Team Tweets

CCS Insight
RT @nickmcquire: My latest blog on our recent US/EU IT Buyer Survey: “#Security, #AI & #Microsoft Are Shaping the #DigitalWorkplace” > Some…
Follow CCS Insight
Shaun Collins
Possibly my favourite Christmas this year. Beautifully written and astonishing detail for understanding the backgro… https://t.co/Iq326KdoOk
Follow Shaun
Ben Wood
Nice piece in @MobileNewsMag about Doro. Exciting time for Doro with Peter Marsden in charge and expansion into new… https://t.co/t8OVBEiQY7
Follow Ben
Martin Garner
RT @geoffblaber: China now the only regulatory obstacle to Qualcomm acquisition of NXP. Central to growth & defense from Broadcom https://t…
Follow Martin
Geoff Blaber
RT @Anderson: An ABSOLUTE must read from @nickmcquire for everyone working on end-user enablement, device management, security, or Modern W…
Follow Geoff
Marina Koytcheva
RT @TheEconomist: The number of words a child hears before the age of five helps determine their future. One of our most popular videos of…
Follow Marina
Nicholas McQuire
RT @dgrant4: @nickmcquire Nice research Nic. This is exactly what we are seeing with our digital workspace customers. The move to 'Modern M…
Follow Nicholas
Paolo Pescatore
This looks like a comprehensive #UHD #4K offering from @CANAL_France @canalplusgroupe #LeDécodeurCanal… https://t.co/3mKgJdntz2
Follow Paolo
Kester Mann
Consolidation was always the way ahead for Indian telcos. But tough challenges remain. Today's Daily Insight is wel… https://t.co/Lv6zXQRHnG
Follow Kester
George Jijiashvili
@vladsavov I pickled my purple brains eastern european style
Follow George
Laura Simeonova
RT @CCSInsight: Optimization for artificial intelligence defines competitiveness in mobile chipsets in 2019 and beyond #ccspredicts https:/…
Follow Laura
Katie Taylor
RT @guardianscience: Scientists make first ever attempt at gene editing inside the body https://t.co/e8u0BT9a09
Follow Katie

Recent Blog Posts

Blog Post
Security, AI and Microsoft Are Shaping the Digital Workplace CCS Insight's IT Buyer Survey Points to Further Market Shift... Read more
Blog Post
India's Big Three Operator Consolidation Is Quickly Changing India's Wireless ... Read more
Blog Post
A Change of Pace LG Ditches the Yearly Phone Release Schedule For Samsung an... Read more
More blog

Latest Company News

Blog Post
Expectations for CES 2018 The Big Trends to Watch at This Year's Show ... Read more
More news