Xiaomi has sold 1 million units of its new device Redmi Note 7 in the first month since its launch, as local smartphone makers now scramble to set up new sub-brands amid slowing demand.
“Our new strategy of multiple brands have achieved initial success, considering the great sales results of Redmi’s first smartphone model after independence,” Xiaomi said in an announcement (in Chinese) on Tuesday. It claimed the Redmi Note 7 smartphone sales has crossed 1 million units in mainland China region as of Feb.12.
Xiaomi’s share rose about 5.28% by noon on Wednesday. After the initial IPO frenzy, the company’s stocks have fallen below its initial offering price for over six months.
The Chinese smartphone maker announced on Jan.10 that it was spinning off its lower-end Redmi product line as an independently operated sub-brand. This was followed by the launch of Redmi Note 7 in Beijing five days later, featured a 48-megapixel camera and Qualcomm Snapdragon 660 chipset with a starting price of RMB 999 (around $147).
Redmi Note 7 was sold out of all 100,000 units in about 10 minutes during the first day before it went up for sale again on Jan.18. Xiaomi said the popularity made it believe its brand proposition with cost-efficient products “will be even more compelling in current market conditions.”
Competition in the Chinese smartphone market picking up, as Huawei, Xiaomi, and Oppo have increased their attempts by operating multiple brands. Vivo followed the path by unveiling new sub-brand iQOO on Tuesday, aiming at the higher range of the smartphone market.
According to research firm International Data Corporation (IDC), despite a 10% overall decline in shipment volume in China in 2018, the country’s telecom giant Huawei increased shipment volume by 43.9% year-on-year to 60.5 million over the fourth quarter, compared to 1.4% of Xiaomi and 6.8% of Oppo for the same period.
Huawei Honor president Zhao Ming said on microblogging platform Weibo (in Chinese) in late January that the company had achieved a global sale of 1 million units of its flagship model Honor V20, “far more than they expected.”