As for the tweets, they seem pretty standard; a brand manager announces that a certain device is selling well. Closer views and conversations with retail sources reveal even more. That's because this tweet is not only about a device which is one of the best selling phones in the Indian market (Redmi Note), but also about moving to a whole new price range.
More than 300,000 Redmi Note 12 series have been sold in two months.
Xiaomi Global Vice President Alvin Tse spoke about the sales of the Redmi Note 12 series in India. He said the line of phones contributed more than Rs 1,000 crore in sales within two months of their launch. That number alone probably doesn't mean much to most of us who tend to judge phones in terms of units sold, so let's break it down;
Xiaomi has launched three Redmi Note 12 devices so far: Redmi Note 12, Redmi Note 12 Pro and Redmi Note 12 Pro+.
The cheapest is the Redmi Note 12, which starts at Rs 17,999. The most expensive is the 12GB/256GB variant of the Redmi Note 12 Pro+ which is priced at Rs 32,999. Now, if we are conservative and assume that everyone who buys a Redmi Note series device buys the most expensive variant, the 12GB/256GB variant of Redmi Note 12 Pro+ priced at Rs 32,999 (excluding any discounts or offers). , we will sell more than 3,00,000 units. Within two months, that's 5,000 units sold per day.
While the numbers are impressive, it would be considered " business as usual " for a device as big as the Redmi Note. It was so popular that at some point it might become one of the best cell phone brands in the country. So what makes these numbers so special? Well, in the past, similar figures have been achieved at a much lower price in a segment where the Redmi Note rarely faces serious competition. The Redmi Note 12 series is priced much higher. Competitors include the Nothing Phone (1), the OnePlus Nord and Pixel 6a series, as well as premium mid-range offerings from Samsung, Vivo/iQoo, and Realme.
Redmi Note price history. From 10,000 to 30,000 rubles for 9 years
The Redmi Note series is considered by many to be the series that made Xiaomi one of the best smartphone brands in India. It best represents Xiaomi's core philosophy of "very good specs at a very affordable price" and has a single model starting at Rs 9,999 in its early days. This has changed since 2017, when several Note variants with various suffixes (Lite, Pro, Pro+, Pro Max) were launched at different price points and often at different times of the year. The Redmi Note series is known to be available at around Rs 10,000, moving to Rs 15,000 and then entering the Rs 20,000 segment in 2022 with the Redmi Note 11 Pro+ 5G. There have been lower-priced Note 11 devices, but the flagship Note now starts at nearly double what it was six years ago, and nearly triple the price when it first launched in the country in 2014.
In terms of marketing strategy, this is a rather unusual approach. Brands usually tend to offer cheaper versions of more premium devices like iPhone SE, Galaxy S20 FE, Galaxy Note 10 Lite, Pixel 6a, etc. It's rare for a brand to try to move a known cheap device into a more premium price range. In a sense almost contradictory. Many may see OnePlus as another example of flagship devices moving up the price ladder, but then OnePlus was always considered a high-end flagship phone until the Nord series came along. OnePlus phones should be close performers and flagship killers, regardless of price. The Redmi Note, on the other hand, is a great value proposition without any pretensions to flagship performance, so it's odd to see Xiaomi bringing it into a more premium range.
What makes the move even more baffling for many is the fact that while the Redmi Note has a clear advantage over its rivals in the Rs 15,000 segment and even sub-Rs 20,000, it is positioned right above the area in the crowd. mentioned the mid-premium segment which faces much tougher competition. Xiaomi enters this area in 2021-22, but not through its Redmi Note series. Instead, he chose devices like the Mi 11x, Mi 11 Lite and Redmi K50i, along with a few Poco devices. It seems that the Redmi Note will not enter the premium middle class segment.
"Like doubling the price of a McDonald's hamburger."
However, the Redmi Note 12 series has done just that. Indeed, two of the three devices in the range are in the premium mid-range segment, the Redmi Note 12 Pro starting at Rs 24,999 and the Redmi Note 12 Pro+ starting at Rs 29,999. The Redmi Note 12, priced at Rs 17,999, looks amazing. Yes, the more expensive variant provides better hardware: high megapixel camera with OIS, fast charging, etc. - but the Redmi Note 12 Pro and 12 Pro+ face comparable (and in some cases) competition. , the better) specifications, without any real price advantage. After years of struggling with the price advantage, the Redmi Note has now entered an area where it lacks such a strong perceived price advantage and where it has strong competitors. " We always strive for value for money," said Xiaomi India CEO Anuj Sharma during the product launch conference. " But that doesn't mean we can't fight even with simple words. The Pro Series is proof of that. "
Many do not think this step will work. Redmi Note's reputation as a budget device with an excellent price-performance ratio seems to have been a hindrance in the higher price segments. After all, doesn't Redmi itself choose to buy in the Rs 25,000-30,000 range with various devices (K series)? In some circles it is believed that Xiaomi is playing on the goodwill of the Redmi Note brand by moving it to a higher price range. " People expect the Redmi Note to be very affordable," one of our insiders told us. "Can you imagine the price of McDonald's burgers doubling? Would people still buy them or would they look for other options? Remember, when prices go up, you get better choices."
Major pro notes. Did you place a premium code?
However, in testing over the last few months, the Redmi Note seems to have managed to climb up the price ladder very well. What's really surprising is that, according to our source, sales of the Redmi Note 12 series are dominated by the more expensive models, the Redmi Note 12 Pro and Redmi Note 12 Pro+, rather than the more affordable models. Redmi Note 12 series Given the competition these two devices face, their performance is very impressive. Within the price range of the Redmi Note 12 Pro and 12 Pro+ are devices with a better design, better processor, bigger battery, newer software and comparable cameras. The fact that consumers are still going the Note Pro route might indicate that Xiaomi may have overcome its history as a price fighter.
It may still be early days, but sales of the Redmi Note 12 series seem to indicate that Xiaomi is close to breaking the code for premium (albeit mostly mid-range) phones in a market previously dominated by price wars. Of course, this doesn't mean that it will abandon its budget roots, but it opens the door for more devices in the brand's more expensive segment.
No wonder one of our colleagues asked during the conference. Could there be a Redmi Note 12 Ultra in the coming days? Notably, Xiaomi has not ruled this out. Neither do we. Redmi Note seems to have entered a new era in India. So are the main brands.
(Note to McDonald's: No, don't double or triple the price of your hamburger. Please.)
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