Xiaomi is confirmed to be selling its first smartphone new product 'Redmi Note 14' in the domestic market through the offline distribution networks of the three major mobile carriers after establishing a Korean subsidiary. Since Xiaomi began selling smartphones in the Korean market through a domestic distributor in 2018, this is the first time the company is selling its new products through the offline distribution networks of the three mobile carriers.
According to the industry on the 15th, the 'Redmi Note 14' scheduled for release in Korea on the 22nd will be sold through the offline stores of the three major carriers. A source familiar with Xiaomi noted, "We secured offline distribution first through an agreement with SK Telecom in October last year, and after finalizing talks with LG Uplus in December following KT, we began selling the older smartphone 'Redmi Note 13' through the offline stores of the three major carriers on a trial basis from January this year," adding, "The Redmi Note 14 is the first product that Xiaomi will sell offline through all three carriers."
While Xiaomi did sell the 'Mi 10 Lite' model through some offline stores of SK Telecom and KT for the first time in 2020 via the Korean distributor, this is the first time that it has entered all three mobile carriers. Xiaomi started selling smartphones in Korea through a domestic distributor in 2018. The focus was on online sales, with some products sold through the online stores of the three carriers. In fact, aside from Apple, foreign smartphone manufacturers have struggled to break into the offline stores of mobile carriers, leading to Korea being referred to as 'the graveyard of foreign smartphones.'
With Xiaomi's acquisition of offline sales networks through the three major carriers, the industry believes there is potential for a shift in the competition structure into a three-way rivalry among Samsung and Apple. A source in the telecom industry stated, "After LG Electronics withdrew from the smartphone business, the rivalry has been predominantly between Samsung and Apple, but it seems there are expectations that Xiaomi's entry will create a 'catalyst effect' in the device market from the perspective of the carriers."
Xiaomi is the world's third-largest smartphone manufacturer, competing with Samsung Electronics and Apple. According to market research firm Counterpoint Research, in the third quarter of last year, Samsung Electronics had a market share of 19%, Apple 17%, and Xiaomi 14% based on shipment volume. However, during the same period, Samsung's market share in Korea was 80% and Apple's was 19%. The market share of other foreign smartphones like Xiaomi and Motorola is only 1%.