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Xiaomi Split Redmi Brand and Launched Note 7

by Yiwen Wu | Jan 11, 2019

Xiaomi split Redmi as a separate brand in order to strength its marketing presence in different segments. On January 10th 2019, the company introduced the new Redmi brand in Beijing, as well as the first model under the separate brand: Redmi Note 7. We participated in the event.

Splitting Redmi Brand

Overall, we viewed the brand split as a wise move to strength Xiaomi’s marketing presence across different segments. We expect Redmi and Xiaomi Mi will share the resources in R&D, component procurement, manufacturing and logistics to utilize the scale effect. Meanwhile, they will operate separately in product development, branding, marketing and sales to seek more flexibility.

At the same time, we are concerned that the brand split might bring in some risks, especially the potential cannibalization between different brands. As two separate brands, Redmi and Mi series are supposed to target different consumer groups to maximize Xiaomi’s overall performance. But it is still unclear how these two brands will differ on brand positions. In addition, Xiaomi now runs another three brands: POCO for overseas market, Black Shark for gaming phone, and Meitu for female and selfie segment via brand license agreement. Although the latter three are relatively small by scale, we still view managing five smartphone brands will post new challenges for Xiaomi.

Redmi Note 7

Redmi Note 7 is an entry level smartphone with outstanding cost to performance ratio. The model comes with Qualcomm 660 chipset, 6.3-inch LTPS display with water-drop / narrow notch design, 48MP+ 5MP rear camera, 13MP front camera, and 4000mAh battery. In addition to that, Redmi Note 7 supports both USB type C port and 3.5mm audio jack, and supports QC4.0 fast-charging standard. Its 3GB+32GB, 4GB+64GB, and 6GB+64GB are priced at RMB999 (~USD150), RMB1299 (~USD190), and RMB1399 (~USD210) at retail respectively, with an extended 18-month warranty.

The 48MP rear camera is a key selling point of Redmi Note 7, given its low price tier. However, we consider the current memory size (32GB and 64GB) is likely to drag down the usability of the 48MP rear camera, given the size of the photo and video shot. 3GM RAM, coped with Qualcomm 660 chipset, is likely to be insufficient for a fluent user experience either.  

Regardless of its potential drawback in memory side, we view Redmi Note 7 is a price competitive model and would generate meaningful volumes for Xiaomi in 2019.

Redmi Note 7 Photo 

 

We have just published our report Xiaomi Split Redmi Brand and Launched Note 7. WSS clients could access the report via here.

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