In an interaction, he said the Indian smartphone market has undergone a structural transformation, with the average device replacement cycle extending from around nine months to one year in 2017 to nearly 3.5 to 4 years currently.
As a result, consumers are upgrading less frequently but are willing to invest more in smartphones, leading Xiaomi to prioritise revenue growth over shipment volumes, Sarma added.
He was in Chennai for the launch event of the Redmi Note 17.
“Our focus is not volume anymore. We made the pivot from volume to value last year because the market is changing. When people are upgrading every four years instead of every year, they are willing to spend more on the device,” Sarma pointed out.
He noted that the average selling price (ASP) of smartphones in India has increased from around Rs 8500 in 2014 to nearly Rs 25000, reflecting the industry’s move towards premium devices.
Xiaomi has accordingly expanded its portfolio across price points, offering smartphones from around Rs 10,000 to Rs 1.4 lakh while strengthening its connected device ecosystem with televisions, tablets, wearables and other smartphone products.
Marking 12 years of operations in India, Sarma highlighted that the country has become one of Xiaomi’s longest-serving overseas markets after China. The Redmi Note series alone has crossed 80+ million unit sales in India, while the company’s overall installed base has reached around 130 million users, making India one of Xiaomi’s largest markets globally.
On manufacturing, he said nearly all of Xiaomi’s smartphones, televisions and tablets sold in India are manufactured locally. The company sources around 45 per cent of the non-semiconductor bill of materials from India, including chargers, batteries and camera modules, while continuing to increase localisation.
Exports are not an immediate priority as production is focused on meeting domestic demand, Sarma added.
The Redmi Note 17 will be available from 12 August at a starting price of Rs 24999 for the 6GB+128GB variant and Rs 27999 for the 8GB+128GB variant model available through Xiaomi retail stores, partner outlets, and online platforms such as Amazon and the company’s official website.