Chinese company Xiaomi will launch its flagship smartphone 'Xiaomi 15' in South Korea at a price of 1.1 million won to coincide with the opening of its first offline store. Xiaomi plans to sell the Xiaomi 15 through a 100% self-sufficient system (purchased directly from the manufacturer without going through carriers). After the hacking incident involving SK Telecom, a competition among carriers over subsidies has emerged, and some stores are even offering free phones. This has led to criticism that Xiaomi's marketing strategy in the Korean market is 'a failure before the product launch.'
◇ Xiaomi excluding carriers from 'Xiaomi 15'… losing price competitiveness
According to the telecommunications industry on the 27th, Xiaomi is pushing for the sale of the Xiaomi 15, scheduled for release on the 28th, through a 100% self-sufficient system without involving carriers. It will only be sold through the official Xiaomi Korea online store, Coupang, Naver Brand Store, and the first 'Mi Store' opening in the IFC Mall in Yeouido, Seoul. The official price of the Xiaomi 15 is set at 1,109,900 won (for the 256GB model), which is 45,100 won cheaper compared to the price of the 'Galaxy S25 (256GB)' at 1,155,000 won.
Although the Xiaomi 15 has not yet been launched, there are many opinions within and outside the industry that 'selling without carriers is a failed marketing strategy.' This is because recently, as the competition among carriers has intensified, there have been many cases of purchasing the 'Galaxy S25' or 'iPhone 16' at lower prices. A source from the telecommunications industry said, 'It seems that Xiaomi, which still has a weak premium brand image in Korea, is losing out to Samsung and Apple in terms of price. With carrier subsidies and distribution rebates, you can essentially buy the Galaxy S25 for free, so it's questionable whether there will be consumers willing to buy a Chinese brand Xiaomi phone.' They added, 'Once the current telecom law is abolished, restrictions on carrier subsidies will also be lifted, and it seems that choosing a 100% self-sufficient method without carrier subsidies was a marketing mistake.'
According to the telecommunications industry, the three major carriers recently released subsidies of over 800,000 won for the 'Galaxy S25 (256GB)' priced at 1,155,000 won through sales points. As a result, the actual purchase price of the device has dropped to the 300,000 won range. In some stores, subsidies have reached up to 1.15 million won, making it possible to purchase the phone essentially for free.
◇ Xiaomi Korea lacks marketing experts… president is a non-market expert
According to the industry, Xiaomi's smartphone market share in Korea was around 0% in the first quarter of this year. It has been said that less than one device is sold per day. A source in the industry stated, 'It seems that Xiaomi's understanding of the distribution structure centered on carrier sales and the consumption tendencies regarding premium phones in the Korean market is lacking.' They added, 'While high-end phones are sold exclusively through self-sufficient sales, mid-range phones that could be sold through carriers are being sold exclusively as well. This seems to be a case of strategic marketing being reversed.'
Currently, there are fewer than three marketing employees within Xiaomi Korea, according to the industry. Johnny Wu, the president of Xiaomi Korea, is also not a marketing expert. Wu is known to be an expert in global production strategy and supply chain optimization, with experience primarily in countries like India, Indonesia, Turkey, Pakistan, and Egypt, which are centered on self-sufficient consumption of mid-range phones.
In January, Xiaomi began selling its mid-range phone 'Redmi Note 14 Pro (399,300 won)' through the offline distribution points of the three major carriers, but subsequent releases such as 'Poco X7' and 'Xiaomi Ultra 15' have only been sold through online stores. A representative from a telecommunications distribution point remarked, 'At a time when subsidies for mobile phones have significantly increased due to intensified competition among carriers, it would be easier to sell a premium phone like the Xiaomi 15 with carrier subsidies. I don't understand why they are making this choice.'
◇ While pledging to expand in the Korean market, the launch of the latest products is 'on the back burner'
Xiaomi held a press conference in January and declared that the purpose of establishing its Korean subsidiary is to expand its market. However, it has not yet designated Korea as a primary launch country globally. This is in stark contrast to Samsung and Apple, which have selected Korea as a first-launch country to introduce their latest products first.
Xiaomi has been releasing products that have been on the market for several months in Korea. The Xiaomi 15, scheduled for release on the 28th, had its global first launch date on March 2, meaning it is being launched about four months late. Professor Kim Yong-seok of Gachon University stated, 'It will be difficult to expand in the market when they introduce new products to the Korean market later than Samsung and Apple and also lack price competitiveness.'