Why Xiaomi’s India strategy is a lot more than smartphones: COO Sudhin Mathur explains | Technology News

In India, Mathur explained, the strategy is to build beyond smartphones—into categories such as tablets, wearables, televisions, and eventually maybe even home appliances. Speaking to Nandagopal Rajan, he outlined how Xiaomi is innovating across price points, embracing AI, and adapting to India’s premiumisation journey. Edited excerpts:

Q: The tablet market has had its ups and downs. How do you see the segment panning out? Is it a laptop replacement or more of a secondary device?

Sudhin Mathur: “Absolutely right. I mean, the category of tablet has evolved. Two or three years back, especially during Covid, people were using this device more for their education purposes and things like that. That’s when the category grew. However, over a period of time, it has probably stagnated and declined, because it’s a device somewhere between a smartphone and a laptop.

So I don’t think it is going to replace either, especially the laptop. It is definitely a secondary device, but more so for people on the move. Easy to carry, take notes quickly, and things like that. Laptops and tablets have different use cases.

The way the category is developing today is more from your entertainment point of view — on your flights, you want to watch movies, or in your meetings, you take notes. Also, the stylus is becoming one of the key important features as well. Content consumption, quick notes, things like that. That’s where the tablet has a place, especially for people who are on the move.”

Q: With AI adoption surging, do you see it creating new use cases and demand for devices?

Sudhin Mathur: “Yes, absolutely. AI is like a very loosely used word today. In every conversation, it is being used. But there are several use cases. It’s just the beginning. You’re starting to see that in phones — people use ChatGPT and other stuff. Moving forward, there will be larger integration in devices. Smartphones, for example, now have Circle to Search, filters in cameras, and summaries of documents, and you can do or ask anything. I think there are still far bigger use cases to be seen. This will be one of the key use cases, if not a differentiator, because everybody will have access. It will enhance the engagement with these devices.”

Q: Beyond smartphones, Xiaomi is in TVs, wearables, appliances, and even EVs. How important is it for Xiaomi to be seen as an ecosystem or lifestyle brand, rather than only a smartphone company?

Sudhin Mathur: “So that’s the journey we have to take — extremely important. And like I say, it’s not an India strategy; it’s a company-overall strategy. At least in China, we have the entire ecosystem. We are now bringing products one by one and trying to build leadership across each category. In many of these categories in China, we are already number one.

Smartphones probably bring revenue, but the profitability of the organisation comes from many of these other products as well, which was reflected in the quarterly results we came out with recently. We want to be known not just as a smartphone company but as a high-tech brand — making connected devices where you can connect seamlessly across all your devices, whether on mobile, in your home, or hopefully in your EV car. That’s the core philosophy of Human Time, Car Time, Home. There are more than 20 million consumers who have more than five Xiaomi devices. That’s our differentiated strategy.”

Q: Are you planning to expand your product portfolio in India, especially large appliances like ACs or refrigerators?

Sudhin Mathur: “Yeah, we keep exploring all categories. Getting a product in India is the least of our problems. But it needs to have a market fit. There has to be a go-to-market strategy and the opportunity, whether the market is saturated or whether there is growth potential. Does it fit the masses? All those things come into our consideration. Cherry-picking stuff is easy. But large appliances need a larger strategy to think through. We still have to evaluate some of those categories.”

Q: Xiaomi entered India as a value-for-money brand. But consumer aspirations have evolved. How do you balance affordability with rising demand for premium products?

Sudhin Mathur: “Many of the categories have slowed down in terms of volume, but the premiumisation journey has already started in this country. Whether you talk about smartphones, tablets, or wearables, the value segments are growing.”

“Xiaomi as a brand is available across the spectrum. Value for money doesn’t mean the cheapest. It means that at every price segment, there is value to the consumer. For example, our Pad 7 at ₹40,000 offers technology that some other brands sell at ₹1 lakh or more. Similarly, our TVs — people used to buy 32-inch models earlier, but that segment is declining. Consumers are now shifting to QLEDs, and we just launched QLED TVs that are doing extremely well. So yes, as consumers shift preferences, Xiaomi has products across all price points — still providing cutting-edge technology at an affordable price.”

“While smartphones will continue to be an important category, we want to differentiate ourselves as a brand that is not just a smartphone brand but a complete ecosystem brand. We will continue to bring innovations that consumers need at every price point and across categories. Moving forward, you will hear more and more exciting news from us in tablets, wearables, TVs, and beyond.”