Xiaomi, LG seeks vacant seats and launches Koreans… Will the 300,000 won cost-effective phone work?

Enter 2021.03.19 06:00

Xiaomi to unveil domestic Hongmi Note 10 series on March 23
LG Electronics vacant seats Compete with Samsung and Apple…Success is unknown

Expected to withdraw from the smartphone business LG Electronics (066570)Xiaomi has challenged the domestic market in order to aim for a vacancy in the market. lately Samsung Electronics (005930)In the domestic smartphone market, such as reinforcing the strategy of mid-to-low-priced smartphones, and the’cost-performance ratio’ becomes the most important factor in purchasing considerations, attention is focused on whether Xiaomi’s’selling seven days’ challenge, which is called the end-of-cost-performance king, will succeed.

According to the industry on the 18th, Xiaomi will hold an online press conference for the release of the Hongmi Note 10 series in Korea on the 23rd. After the product announcement by Xiaomi East Asia general manager Wang Wang, Smyven is expected to receive questions from the domestic media.

The Hongmi Note 10 series consists of two types: Hongmi Note 10 and Hongmi Note 10 Pro. It is expected to be sold through a self-sufficient channel as a long-term evolution (LTE) model, not a 5th generation mobile communication (5G). The domestic shipping price is expected to be around 300,000 won.

Until now, the domestic smartphone market has been the grave of foreign smartphones except for the Apple iPhone. According to counterpoint research, a market research firm, Samsung Electronics occupied 65% of the domestic smartphone market last year, followed by Apple with 21% and LG Electronics with 13%.

Xiaomi has been steadily challenging in the domestic smartphone market with a’cost-performance ratio’. Last year, the domestic distributor also won the game by replacing the existing Jimobi Korea with Korea Technology. Nevertheless, the number of sales of the’Me 10 Lite’ released last year was only at the level of several generations, and the box office was unsuccessful.

But this year, the situation has changed. Xiaomi has recently advanced in the global smartphone market such as Europe, and in fact, it is analyzed that it is worth aiming at the vacant position of LG Electronics, which is the procedure for withdrawing the smartphone business. The proportion of self-sufficient phones in the domestic smartphone market is also increasing. SK Telecom (017670)·KT(030200)·LG Uplus (032640)Xiaomi’s calculation is that sales can be expected without going through the distribution network of the three telecommunications companies.

In particular, Xiaomi, unlike other Chinese companies, has a better brand image in Korea. In many domestic homes, various products such as Xiaomi’s smart band, robot cleaner, air purifier, weight scale, light-emitting diode (LED) stand, electric fan, and electric kickboard are gaining popularity.

However, unlike ordinary home appliances, smartphones contain all of their personal information, including important personal life, so the atmosphere of reluctance to purchase Chinese-made smartphones is still a strong point to be overcome. It is also burdensome for Xiaomi to strengthen its competitors’ lineup of low-end smartphones.

An official from the telecommunications industry predicted that “Samsung is releasing the Galaxy A series with good performance at low prices, and the Apple iPhone is also lowering the shipping price and increasing domestic sales, so it will be difficult for Xiaomi to take up the gap in LG Electronics meaningfully.”

Samsung Electronics has already released the Galaxy A32 and Galaxy A42, which are in the range of 300,000 to 400,000 won this year. On the 17th,’Galaxy A52′ and’Galaxy A72′, which will be released in the range of 400,000 to 600,000 won, with some premium features through the Galaxy Unpack were unveiled. It is expected to be released in the second quarter in Korea, starting with the launch in Europe.

Apple is also trying to capture the hearts of Korean consumers. Korea, which had to wait for a while after every second release, became the 1.5th release country along with India and others when the iPhone 12 was released last year. In addition, it is known that it recently opened the 2nd Apple Store in Yeouido, and the 3rd and 4th stores in Myeongdong and Busan. It is reported that Apple will release a new model of the iPhone SE, a popular lineup in the second quarter.