Xiaomi has recently launched the Redmi Note 5 smartphone in South Korea with a pricing of KRW 292,200 (~$263) through leading carriers such as SK Telecom and KT. The amount is way less than the 2017 average selling price of $500 among the Korean smartphone vendors. The enticing price tag of Redmi Note 5 has caught the attention of the South Korean market as local sources have claimed that it is positive response from the customers during the pre-orders period. It seems that after outpacing Samsung’s market share in India, Xiaomi is now gearing up to rival it in the home market.
During a recent press event in April, Xioami CEO Lei Jun had promised the company has set a net profit margin of hardware business at 5 percent. The low profit strategy has allowed the company to achieve good popularity in new markets. This strategy Xiaomi to dethrone Samsung’s from the numero uno spot in India in just four years of entering the market. And now, the Chinese manufacturer has entered South Korea, the home market of Samsung.
Samsung has a market share of 55 percent in South Korea. It is followed by Apple at 28.3 percent and the third belongs to LG with 15.7 percent market share. These three companies account for 99 percent of smartphone market share in South Korea. The Redmi Note 5 (Pro) has been a lethal weapon from Xiaomi that has allowed it to outperform Samsung in India. The same smartphone may allow the Chinese manufacturer to gain some market share in South Korea. Xiaomi has confirmed that it is considering starting its first retail store in the country.
