Xiaomi changing its India strategies

Xiaomi (1810) plans to focus on 5G smartphones and a leaner product portfolio in India, trying to claw back market share lost to rivals, including South Korea's Samsung Electronics in its second-biggest market.

China's Xiaomi held the smartphone lead in India for years before regulatory headaches and a too-vast product portfolio - which, by its own admission, confused customers - led to its decline.

In the quarter to March, Xiaomi ranked fourth behind Samsung, Oppo and Vivo in India's smartphone market, researcher IDC said.

To steer the company back to its earlier success, Xiaomi is making crucial changes that include reducing the number of smartphone launches and focusing more on enhancing the overall customer experience. India is one of the most intensely contested markets for the world's biggest phone brands, with companies such as iPhone maker Apple pushing to boost sales in the most populous country.

Xiaomi is also making other key changes in the region. Pushed by New Delhi, it is deepening local sourcing and also handing some of its smartphone assembly in India to homegrown Dixon Technologies India.

Xiaomi will unveil a new 5G smartphone on August 1, priced from US$200 (HK$1,560) to US$250, said chief marketing officer Anuj Sharma.

The move is part of the company's strategy to sell affordable, locally assembled 5G models.

Separately, Apple found itself the target of a 785 million (HK$7.85 billion) class action lawsuit brought by more than 1,500 apps developers in the UK over its App Store fees.

The commissions of 15 to 30 percent that the company charges some app makers for the use of an in-app payment system have been criticized by apps developers and targeted by antitrust regulators in several countries.