Xiaomi launches sub-brand Poco to tap into India's premium smartphone mkt

With its eyes on the premium smartphone market in India, Chinese tech major Xiaomi today launched its sub-brand Poco that will compete with high-end devices from the stables of OnePlus, Apple and Samsung.

Poco -- which launched its maiden smartphone 'F1' today priced at Rs 20,999 onwards -- will use the manufacturing and supply chain as well as the after-sales network of the Chinese parent.

"Poco brand is focussed on innovation and has a different positioning. Our first handset - F1 - is for the power users....We don't think Poco will impact Xiaomi sales, Poco will be complementary to Xiaomi," its Global Head Alvin Tse said.

Over the past few years, a number of handset makers like Huawei (Honor) and Micromax (Yu) have launched sub-brands to cater to the Indian consumers.

Poco F1 features Qualcomm Snapdragon 845 platform, 'LiquidCool' cooling system technology, up to 8GB RAM and 256 GB storage, along with a 4,000 mAh battery. The device -- in multiple variants -- will hit the shelves in India on August 29 and roll out around the world gradually.

"Poco stands for 'a little'. As a small outfit within Xiaomi, Poco has the freedom to start from scratch, zeroing in on the product choices and technologies that matter. The brand focusses on delivering performance and innovation, which we believe will resonate with tech enthusiasts," Jai Mani, Head of Product at Poco Global, said.

The premium smartphone segment in India as a category is growing at a strong pace and is currently dominated by OnePlus, Apple and Samsung.

In a recent interview, Xiaomi Vice President and India Managing Director Manu Jain had told PTI that while the company was focussing on mid and mass categories -- which occupy the biggest share of the market -- it was also keen on expanding its presence in the above Rs 20,000-price category.

It had recently launched Android One-based Mi A2 in India priced at Rs 16,999 onwards. Its Mi MIX 2, the most premium device in Xiaomi's portfolio, is priced at Rs 29,999.

The premium category is estimated to account for less than 10 per cent of the Indian market in terms of shipment. The value contribution, however, is higher.

The segment is also growing at a strong pace in India, which is among the largest smartphone markets globally. Players like vivo and Honor are also aggressively looking at tapping into the segment with their devices offering premium features.

According to Counterpoint Research, OnePlus had 40 per cent share, followed by Samsung (34 per cent) and Apple (14 per cent) in the June 2018 quarter. These three brands contributed to 88 per cent of the premium handset market as compared to 95 per cent a quarter ago.

While the Counterpoint report did not disclose the number of devices shipped under the premium segment, market experts estimate that quarterly smartphone shipments range between 1-1.5 million units.