"Word of mouth promotion is extremely important for us and especially so in a market like India" said Hugo Barra, Global VP for Xiaomi. "Which is why you won't see any full page advertisements in the papers for Xiaomi's products. We save that money and plough it back into the products which is what allows us to price them lower."
Today, they went ahead and announced their second device for India, the entry-level Redmi 1S. Although the Redmi 1S has been listed for Rs 6,999 on Xiaomi's own Mi.com – the company stunned everyone by announcing an even more enticing price of Rs 5,999. This is not a special offer or introductory price – this is the final price of the product going forward.
The Redmi 1S features a 1.6Ghz Qualcomm Snapdragon 400 quad core processor, 1GB RAM, 8GB storage (expandable via micro SD), 4.7-inch 720p IPS LCD, dual cameras (1.6MP front and 8MP rear with 1080p video recording) and dual SIM card slots (one 3G and one 2G). Note that both SIM slots use the older mini SIM standard and not the more common micro SIM – helpfully, the company is including two micro to mini SIM adapters in the box.
"Think of it this way" added Barra – "when you buy a phone from a company after seeing a full page advertisement, in essence, you're also paying for that ad. You're also paying for someone who sees the ad and doesn't buy the phone". The strategy is certainly working, because Redmi 1S seems poised to take on the entry level Android market which is currently dominated by the likes of Micromax, Karbonn, Motorola and others.
The new device will follow the same flash sale model – with prior registrations on Flipkart required in order to be able to purchase it. Sale day will be the usual – every Tuesday at 2pm IST – the first sale will be 2 Sep 2014. Interested users can start registering for the sale from 6pm onwards on 26 August 2014.
16 Comments on this Story
Amirthanathan Arulappan2254 days ago
Probably, the one smartphone that is ruling the smartphone markets is Xiaomi. With the release of MI3 and Redmi, millions of smartphone units have been sold so far and the sale is still running. It is the low price that fascinated the millions of buyers out there.
To create further wide upsurge in the market, Xiaomi is emerging with a smartphone at a very low price of 4,000. The name of the smartphone is not revealed yet but it is believed to feature LTE support, 720p (HD) display andM 1 GB RAM.
C Naveen2332 days ago
Need to try out Xiami...
Lakshminarayanan Srinivasan2333 days ago
What a way to sell phones
There is literally a scamble to buy the phones and they seem to have their strategy extremely right. Way to go.