Xiaomi’s Redmi brand launched its latest flagship model K20 series on May 28, 2019 in Beijing, China. Our analysts from Wireless Smartphone Strategies (WSS) services attended the launch event.

Redmi K20 series is the vendor’s latest effort to lift Redmi brand. We believe Redmi K20 series will help Remi extend to high end segments and improve ASP / profitability.

• Redmi K20 Pro is the premium model, with the US$300-399 wholesale price tier. It is powered by Qualcomm Snapdragon 855 chipset and features 6.4-inch notch-less rigid OLED display, 20MP pop-up front camera, triple-lens rear camera (48MP/Sony IMX586 sensor + 8MP wide + 16MP telephoto), 4000mAh battery, in-display fingerprint sensor, and 3.5mm audio jack. It supports NFC, GPS and 27W fast charging.
• Redmi K20 shares the similar ID design and hardware features with K20 Pro. However, it is downgraded with Qualcomm Snapdragon 730 chipset, 18W fast charging capability, and Sony IMX582 for its main camera at the rear. It is positioned as a high-end model in US$191-299 wholesale price tier.

The availability of K20 series will help Redmi enrich its product line-up across multiple price tiers. Redmi now has premium K20 series, mid-tier Note 7 series, and mass-market Redmi 7 series. Redmi K20 Pro will help Xiaomi to grab more market share in US$300-400, the price band which will see a healthy growth rate in 2019, while overall smartphone market will maintain the downturn track this year. At the same time, it provides Redmi fans with more option, by extending addressable market. In addition to entry level smartphones to first-time smartphone buyers, Redmi is also be a valid option to experienced smartphone buyers with upgrade demands.

However, there are some risks and uncertainties. The major one is how to differentiate Redmi from Mi brand, especially in the price band of USD300 and above. Another issue that Xiaomi needs to closely monitor is the reaction of Redmi fans about the brand uplift. K20 Pro is almost two time expensive than Redmi Note 7, the “old” flagship device of Redmi series launched last quarter. The launch of K20 series is just a start, how to migrate Redmi fans to higher price bands is the challenge ahead.

Our latest report Xiaomi’s Redmi Lift ing Up with K20 Series is published. WSS client could access the full report via this link.