Xiaomi to Launch Affordable Smartphone Next Month, Challenging Huawei's Pricing Strategy

The discussion around affordable smartphones has been ongoing, with some users suggesting that a price point of around 1500 yuan (approximately $220 USD) would be considered affordable for most people. However, others argue that the concept of "affordable for everyone" is subjective and depends on individual income levels and purchasing power. This conversation was further fueled by the recent launch of Huawei's new product, the Huawei Pura X, with a starting price of 7,499 yuan, which sparked backlash from netizens who deemed the price too expensive. The incident led to the phrase "everyone can afford" trending online, which may be seen as a response from Xiaomi.

REDMI Product Director Wang Teng took to social media to solicit feedback from netizens on what they thought was an affordable price range for a smartphone, with the majority of respondents suggesting that an affordable price range would be between 1,999 and 2,999 yuan. Wang Teng then revealed that next month, Xiaomi would be launching a new product that most users could afford, describing it as a good-looking device with strong performance. He hinted that those planning to upgrade their phones should wait for this release.

The product Wang Teng is referencing is likely the REDMI Turbo 4 Pro, which has already obtained 3C certification and is expected to be officially released in April. The Turbo 4 Pro is rumored to be equipped with a Snapdragon 8s Elite (SM8735) processor, a 1.5K LTPS high-frequency dimming eye-care straight screen, and a narrow bezel large R-angle design. It is also touted as having the largest battery and strongest texture among phones in the same category and platform. The starting price of the Turbo 4 Pro is estimated to be around 1,800 yuan after government subsidies.

In contrast, Huawei's CEO, Yu Chengdong, responded to the controversy surrounding the Pura X's price, stating that many people expected it to be very cheap but that the costs, including the use of flagship-level chips, cameras, and new technologies like the foldable hinge, were actually very high. The Huawei Pura X was released on March 20, with prices ranging from 7,499 yuan for the 12GB + 256GB version to 9,999 yuan for the 16GB + 1TB version. Many netizens expressed disappointment with the high prices, feeling that they contradicted Huawei's earlier claims of affordability.

The online community has been abuzz with enthusiasm and speculation about the upcoming release of the affordable phone, with many netizens eagerly awaiting its launch. Some believe that a price point of around 1,500 yuan ($220 USD) is the threshold for what could be considered affordable for the majority of people. However, others cautioned that even with the promise of affordability, ensuring the quality and durability of such an affordable phone would be paramount to its success in the market. The diversity in opinions showcases the complexity of meeting consumer expectations for an "everyone can buy" standard.

The differing business strategies employed by Xiaomi and Huawei are rooted in their distinct approaches to driving growth. Xiaomi's focus on "C-end driven" growth emphasizes the importance of catering to consumer needs, prioritizing affordability and value for money to make high-quality products accessible to a broader audience. In contrast, Huawei's "B-end driven" approach places a greater emphasis on building a robust ecosystem, where the company collaborates closely with various stakeholders, including developers, channel partners, and industry players, to foster a mutually beneficial environment. Both companies are driven by distinct visions, each contributing to the advancement of China's technological landscape in their unique way. While some may view Huawei's premium pricing as a detachment from the masses, it is essential to recognize that both companies are playing crucial roles in guiding the entire value chain towards overcoming foreign technological barriers and achieving industrial upgrades.