Xiaomi flexes its muscles at MWC: Why do its phones sell for more than iPhones overseas?

Xiaomi Group showcased its strength during MWC25 held in Barcelona, Spain, holding a global launch event for the Xiaomi 15 series smartphones, featuring several new products in the "people, vehicles, and home ecosystem," including Xiaomi Surge OS 2, Xiaomi Pad 7 Pro, Xiaomi Buds 5 Pro, Xiaomi Watch S4, and Xiaomi Electric Scooter 5 Max. Notably, the Xiaomi 15 Ultra smartphone is priced higher in Europe than the iPhone 16 Pro; what is the reason behind this?

According to The Paper, the overseas launch of Xiaomi's latest creations, the Xiaomi 15 and Xiaomi 15 Ultra, was the highlight of the event (Xiaomi did not release an overseas version of the Xiaomi 15 Pro). The starting price of the highest-end Xiaomi 15 Ultra is £1,299 (approximately RMB 11,914) or €1,499 (approximately RMB 11,349), which is 80% higher than the domestic price of RMB 6,499.

The starting price of the iPhone 16 Pro in Europe is €1,449 (equivalent to RMB 11,184), and the pricing of the Xiaomi 15 Ultra surpasses that of Apple, demonstrating Xiaomi's confidence in the Xiaomi 15 Ultra.

The pricing of the Xiaomi 15 overseas version also exceeded expectations, with a starting price of £899 (approximately RMB 8,245) or €999 (currently approximately RMB 7,563), which is similarly about 80% higher than the domestic pricing.

Both models only offer two storage configurations: 12+256GB and 12+512GB. Perhaps overseas users are not very sensitive to smartphone storage, which is why a top configuration of 16+1TB was not released.

Chinese media believe that Xiaomi's high pricing strategy overseas is correct, as the overseas market is different from the domestic market. Local users do not have a high acceptance of overseas brands. If Xiaomi continues to adopt the domestic strategy of competing on price-performance ratio, it may leave overseas users with the impression that "cheap goods are of poor quality," making it difficult to elevate its brand image in overseas markets.

In June 2023, the Xiaomi 13 Ultra officially entered the European market, marking Xiaomi's first Ultra model aimed at overseas consumers. On the eve of MWC24 in February 2024, the international version of the Xiaomi 14 Ultra was officially launched. The introduction of these two Ultra international versions indicates that Xiaomi aims to change the entrenched perception among foreign consumers that "Xiaomi only offers mid-range and low-end models."

The release of the Xiaomi 15 Ultra overseas version will thoroughly help Xiaomi establish a foothold in the overseas high-end smartphone market.

Xiaomi Group President Lu Weibing stated at the launch event that Xiaomi's most important goal in the overseas market is to make a name for itself in the high-end smartphone market priced between $600 and $1,000 (approximately RMB 4,730 - 7,280), while in the ultra-high-end market above $1,000, it relies entirely on the newly launched Xiaomi 15 Ultra. (The pre-sale volume of the Xiaomi 15 Ultra overseas version achieved over 100% growth.) Xiaomi has realized that in order to achieve a higher market share in overseas markets, it can no longer follow the route primarily focused on mid-to-low-end products with high-end products as a supplement. Instead, it must establish a high-end image right from the start. After all, in the overseas low-end smartphone market, Samsung remains the industry leader, and other manufacturers find it difficult to shake this dominance in a short period.

Xiaomi's success in going global relies not only on good products. Lu Weibing revealed the strategic planning for Xiaomi's overseas market in the next five years, indicating that Xiaomi may become the third-largest smartphone manufacturer after Apple and Samsung.

This statement is not unfounded. According to data released by Xiaomi, its overseas market revenue for the first three quarters of 2024 reached RMB 116.1 billion, with a year-on-year increase of about 30%. Xiaomi's performance in overseas markets is improving.

2025 will be a significant turning point for Xiaomi in overseas markets. If previously Xiaomi only gained recognition in overseas markets, allowing users to know about this quality and affordable Chinese brand, this year Xiaomi will use a series of high-end products to show them why it has survived the fierce market competition for over a decade and become one of the international smartphone giants.

For example, at this year's MWC25, Xiaomi showcased two blockbuster products: the Xiaomi Su7 Ultra electric vehicle and the Xiaomi modular optical system. The former has already achieved a substantial order of about 20,000 units in mainland China, making it the most cost-effective high-performance sports car currently available. Its appearance at MWC attracted considerable attention from overseas media; the latter further validated Xiaomi's strong innovative capabilities.

The Xiaomi modular optical system involves installing an optical lens not originally designed for smartphones on a specially modified phone, then leveraging the phone's high computing power to optimize the various optical information captured by the lens, allowing users to achieve more professional photography.

This aligns perfectly with Xiaomi's consistent approach: while enhancing smartphone imaging, it provides users with richer, more enjoyable, and more professional imaging solutions through external kits, such as previous photography handle kits, external lenses, and this time, the Xiaomi modular optical system.

The emergence of the Xiaomi modular optical system also signifies that smartphone imaging has entered a new stage: when hardware and algorithms have reached a point of saturation, innovating product design by leveraging external resources may achieve significant results.

However, relying solely on smartphones to gain a higher share of the overseas market may be somewhat unrealistic. At last year's MWC24, Xiaomi introduced its "Human-Vehicle-Home Ecosystem" strategy and Xiaomi Surge OS to overseas markets. This year, it has brought a more complete "Human-Vehicle-Home Ecosystem," laying a solid foundation for future connections among billions of devices.

Xiaomi also plans to establish 10,000 Xiaomi Home stores overseas between 2025 and 2029. The establishment of more overseas stores will create a more comprehensive global distribution system for Xiaomi. More importantly, Xiaomi can fully apply the successful experience of domestic Xiaomi Home stores to the global market, further enhancing its brand awareness and influence locally In the early days, mainland China's domestic brands chose the lowest-cost "OEM strategy" for going overseas, but in the long run, this is not beneficial for brand image building. Nowadays, domestic brands going abroad prioritize establishing their own brands, channels, and factories, and think carefully about how to create a business model suitable for the local market centered around mobile phones or other products.

Currently, Xiaomi has already succeeded to a large extent, and there is no doubt that they have achieved good results and gains in overseas markets. However, they must continue to innovate and transform to adapt to the ever-changing market environment and consumer demands, responding to the challenges and opportunities in overseas markets to become a truly world-class brand.

Xiaomi flexes its muscles at MWC, with the Xiaomi 15 Ultra priced higher than the iPhone overseas. (Source: Xiaomi official website)