Xiaomi India moves upmarket as budget phone sales drop

Xiaomi India is shifting its focus toward premium ecosystem products to sustain profitability amid declining smartphone sales, according to company officials.

The company plans to launch high-end smartphones and ecosystem devices such as TVs, tablets, and wearables, targeting India’s top 100 million consumers with higher purchasing power.

Currently, ecosystem products contribute about 15–17% to Xiaomi India’s revenue, with a goal to increase that share to 30%.

The company aims to expand its ecosystem offerings from around 20 products available locally to more, following recent visits by China-based executives to India.

Xiaomi intends to introduce new products monthly, including larger TVs and premium tablets.

The strategy is driven by a shrinking entry-level market, where the share of phones under 15,000 rupees (US$165,71) has dropped from 70% five years ago to 35–38% today, with further decline expected under 10,000 rupees (US$110,48).

Xiaomi’s volumes declined in Q4 2025, with the company planning to target higher-end consumers moving forward.

🔗 Source: The Economic Times

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Implications, context, and why it matters.

Xiaomi’s premium push follows years of regulatory pressure in India

Xiaomi’s move into high-end smartphones and higher-margin ecosystem products comes after years of regulatory and legal trouble in India.
In April 2022, India’s Enforcement Directorate seized assets worth around $725 million from Xiaomi for alleged violations of the country’s foreign exchange laws, which the company disputed 1.
Xiaomi also did not appear on India’s smartphone-sector incentive list under an electronics manufacturing incentive scheme that included Samsung, Apple suppliers Foxconn and Wistron, and Indian brands Micromax and Lava 2.
The pressure overlapped with leadership exits. Manu Kumar Jain said in January 2023 that he was leaving Xiaomi, and other senior leaders left in 2022 and 2023 1.

India’s treatment of Xiaomi raises risks for supply chains reliant on Chinese firms

Even with factories in India and local hiring, Xiaomi still ran into geopolitical tension 2.
Xiaomi told the Indian government that tougher scrutiny made component suppliers uneasy. Some held back on local plans due to compliance hurdles and visa issues 3.
Other global firms may revisit “Make in India” efforts and factor in whether national ties can turn into a political risk.
Some companies may spread production across regions, which can raise costs, to limit exposure to sudden regulatory action.