With The Note 12 Series, Has The Redmi Note Cracked The Premium Code?
As for the tweet, it seems pretty standard: the brand boss said that a certain device did well in sales. However, a closer look and conversations with retail sources reveal more. That's because this tweet isn't just about a device that's one of the best-selling phones in the Indian market (the Redmi Note), but also about moving into a whole new price range.
Redmi Note 12 sold over 300,000 series in two months!
Alvin Tse, VP of Xiaomi Global, talks about the sales of the Redmi Note 12 series in India. He said the sales volume of the phones has crossed Rs 1,000 crore in two months since their launch. That number by itself probably doesn't mean much to most of us who tend to judge phones in terms of units sold, so let's break it down:
Xiaomi has released three Redmi Note 12 devices so far: Redmi Note 12, Redmi Note 12 Pro and Redmi Note 12 Pro+.
The cheapest is the Redmi Note 12 which starts at Rs 17,999. The most expensive is the 12GB/256GB variant of the Redmi Note 12 Pro+, priced at Rs 32,999. Now, if we're conservative and assume that anyone buying a Redmi Note series device buys the more expensive 12GB/256GB variant of the Redmi Note 12 Pro+, priced at Rs 32,999 (excluding any discounts or offers), we get over 3,00,000 units sold. In two months, 5000 units will be sold per day.
While the numbers are impressive, this would be considered " business as usual " for a Redmi Note-level device. It was so popular that at one point it could have become one of the top mobile phone brands in the country itself. So what makes these sales figures special? Well, similar performance has been achieved in the past at a much lower price in a segment where the Redmi Note rarely faces much serious competition. The Redmi Note 12 series has a much higher price tag. Its competitors include devices such as the Nothing Phone (1), the OnePlus Nord and Pixel 6a series, as well as premium mid-range offerings from Samsung, Vivo/iQoo and Realme.
Redmi Note price history: From less than Rs 10,000 to Rs 30,000 plus in 9 years
The Redmi Note series is considered by many to be the series that made Xiaomi one of the leading smartphone brands in India. It best reflects Xiaomi's core philosophy of "really good specs at a very affordable price" and has the only model starting at Rs 9,999 in the early days. This has changed since 2017, when several variants of the Note with different suffixes (Lite, Pro, Pro+, Pro Max) were launched at different prices and often at different times of the year. It is known that the Redmi Note series will be available at around Rs 10,000 and will go up to Rs 15,000 in 2022 and will enter the Rs 20,000 segment with the Redmi Note 11 Pro+ 5G. There are Note 11 devices available at lower prices, but the Note flagship now costs nearly double what it did six years ago and nearly triple the price when it first launched in the country in 2014.
From a marketing strategy point of view, this is a rather unusual approach. Brands tend to release more premium variants at lower prices, such as the iPhone SE, Galaxy S20 FE, Galaxy Note 10 Lite, Pixel 6a, etc. It's rare to see a brand trying to push a popular inexpensive device into a more premium price range. It's almost contradictory. Many may see OnePlus as another example of flagships climbing the price ladder, but at the time, OnePlus was always considered a luxury flagship until the Nord series came along. OnePlus phones are supposed to be flagship performers and killers, regardless of their prices. The Redmi Note, on the other hand, is solid value for money with no pretensions to flagship performance, so it's strange to see Xiaomi pushing it into a more premium range.
What makes this move even more confusing for many is the fact that while the Redmi Note has a clear edge over its competitors in the sub-Rs 15,000 and even sub-Rs 20,000 segments, it is positioned just above the zone in exactly what many would . called the premium mid-range segment, which faces much tougher competition. Xiaomi entered this field in 2021-2022, but not through the Redmi Note series. Instead, he opted for devices such as the Mi 11x, Mi 11 Lite and Redmi K50i, as well as a handful of Poco devices. Redmi Note is unlikely to enter the premium mid-range segment.
"It's like doubling the price of a hamburger at McDonald's!
However, the Redmi Note 12 series has done just that. Indeed, two of the three devices in the lineup are in the mid-premium range, with the Redmi Note 12 Pro starting at Rs 24,999 and the Redmi Note 12 Pro+ starting at Rs 29,999. The Redmi Note 12, priced at Rs 17,999, seems to be the weirdest of them all. Yes, the more expensive versions have better hardware - high-resolution cameras with optical image stabilization, fast charging and so on - but the Redmi Note 12 Pro and 12 Pro+ hold their own against rivals with comparable specs (and in some best cases). no. real cost advantage. After years of fighting for the highest price advantage, the Redmi Note has now entered areas where it doesn't have a very strong perceived price advantage and has deep-rooted competitors. " We are always fighting for value for money," said Anuj Sharma, Chief Marketing Officer of Xiaomi India, during a conference where the product was unveiled. But that doesn't mean we can't compete on performance alone. The Pro Series is proof of that."
Not many thought this move would work. Redmi Note's reputation as an affordable device with excellent value for money should be a thing of the past in the higher price segment. After all, didn't Redmi itself decide to charge Rs 25,000-30,000 for various devices (K series)? In some circles, it is believed that Xiaomi is betting in good faith on the Redmi Note brand, moving it into a higher price zone. " People expect the Redmi Note to be very affordable," one of our insiders told us. " Imagine doubling the price of a hamburger at McDonald's? Will people still buy it or will they look at other options? Remember, get the best options when the price goes up! "
Benefit from reviews - premium code cracked?
However, based on data from the past few months, the Redmi Note seems to have moved up the price ladder very well. What is really surprising is that, according to our sources, the sales of the Redmi Note 12 series are dominated by the sales of the more expensive models - Redmi Note 12 Pro and Redmi Note 12 Pro+, and not the cheaper Redmi Note 12 series. Considering these two devices go head to head with the competition, their performance is truly impressive. The Redmi Note 12 Pro and 12 Pro+ price range have devices with better designs, better processors, bigger batteries, new software and comparable cameras. The fact that consumers continue to choose the Note Pro may be proof that Xiaomi may simply have forgotten its history as a price fighter.
It may still be too early, but sales of the Redmi Note 12 series seem to indicate that Xiaomi is close to cracking the premium phone code (albeit mostly in the mid-range segment) in a market it once dominated by fighting over price. . Of course, that doesn't mean it will abandon its affordable roots, but it does open the door for more devices in the brand's higher price range.
No wonder one of our colleagues asked during the briefing: " Could there be a Redmi Note 12 Ultra in the coming days? Xiaomi doesn't rule it out. Neither do we. It seems the Redmi Note has entered a new era in India, just like its flagship brand.
(Note to McDonald's: No, don't double or triple the price of your hamburger. Please!)
Did this article help you?