Xiaomi is making a bold move into the Korean market, making leading domestic electronics companies like Samsung nervous.
Xiaomi’s strategy of offering high-quality products at competitive prices has raised concerns that the brand could challenge Samsung ’
s dominance at home, a claim that is well-founded as Xiaomi’s competitive pricing strategy has proven effective globally.
Samsung has reason to worry about Xiaomi entering the Korean market.
Samsung has reason to worry about Xiaomi entering the Korean market.
According to data from IDC, in 2024, Xiaomi took third place in the global smartphone market with a 13.6% market share, equiva
lent to 168.5 million units. Samsung ranked secon
d with 18% market share, just behind Apple with 18.7% market share.
According to industry sources, Samsung is closely monitoring Xiaomi’s growing influence. The company is concerned that Xiaomi’s image of cost-effective devices could attra
ct customers away from S
amsung products. Reports even indicate that some Samsung executives may
visit Xiaomi’s newly opened stores in South Korea to experience the brand’s products firsthand.
Watch More Image Part 2 >>>
Xiaomi's advantages
One of the main reasons for Xiaomi’s success is its ability to offer produc
s with high-end features at reasonable prices. The Xiaomi 14T was recently launched in Seoul with a starting price of just 599
800 KRW (10.5 million VND) for the 12/256 GB version. It is equipped with a Snapdragon 8 Gen 3 chip, a 6.67-inch AMOLED display, and advan
ced AI services – all at half the price of competitors like Apple and Samsung.
Xiaomi smartphone models have an extremely attractive configuration-price ratio.
Xiaomi smartphone models have an extremely attractive configuration-price ratio.
Xiaomi is not only limited to smartphones but also expanding into many other consumer electronics products such as smartwatches, TVs and robot vacuum cleaners. This diverse product introduction aims to create a complete connected ecosystem for consumers.
Despite Xiaomi’s competitive pricing and attractive features, the company still faces challenges in providing after-sales service. Outsourcing of repair services and a lack of proper service centers have led to many customer complaints. To succeed long-term in Korea, Xiaomi needs to improve its after-sales service, something Samsung and Apple have done very well.
For this reason, industry experts are divided on Xiaomi’s prospects in South Korea. Some say consumer loyalty to Apple and Samsung is high, making it difficult to capture the market. However, others say that with its strong brand and competitive pricing, Xiaomi could attract consumers looking for low-cost devices.
However, Xiaomi still has some disadvantages.
However, Xiaomi still has some disadvantages.
As Xiaomi consolidates its position in South Korea, its ability to combine affordable prices with cutting-edge technology could reshape the market landscape. However, the company’s long-term success will depend on its ability to address service issues and maintain customer satisfaction. With its bold strategy and diverse product portfolio, Xiaomi is poised to challenge the status quo and has the potential to create a dramatic shift in the South Korean electronics market.
