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Xiaomi Introduced a Data-bundled Entry-level Smartphone: Xiaomi Play

by Yiwen Wu | Dec 24, 2018

Xiaomi announced a new smartphone today - Xiaomi Play - in China. It is an entry-level smartphone model coming with a free 12-month data plan.

As an entry level device, the model is powered by MTK P35 chipset and spots a 5.8 inch LCD display with 432 PPI and a water-drop design. It features 12MP+2MP real camera, 8MP front camera, 4GB+64GB memory, and 3000mAh battery. The device is priced at RMB 1099 (USD 160) at retail and the shipment starts tomorrow.

Inside the device package, there is also a new sim card with a free 12-month data plan. This offer will actually further reduce consumers’ total cost of owning a 4G smartphone. The data plan is most likely to be offered by Xiaomi’s own MVNO service, Mi Mobile. According to Xiaomi, users will get 10GB free 4G data for each month, and after 10GB the data will continue to be free but the speed will be dropped.

This data-bundled business case makes Xiaomi Play rather unique in the market at the moment. It clearly targets to price-sensitive users who are primarily first time smartphone users or the experienced ones considering a secondary phone as personal hotspot. For Xiaomi, the model is critical for new user acquisition, particular at younger generation group. Meanwhile, it is also experimental. If this data-bundled business case echoes well in the market, it could be spread further to Xiaomi’s overseas markets which are dominated by first time smartphone users like India. In the short run, we are however concerned that the popularity of Xiaomi Play may actually lower the vendor’s ASP and profitability.

Xiaomi Play Photo

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