Xiaomi, a Beijing-headquartered smartphone giant, is prioritising product innovation and enhancing customer experience to meet the increasing demand for smart features and unique designs.

Brand new 5G-enabled smartphones are entering the market, Source: Shutterstock

A representative from Xiaomi told VIR, “In 2024, Xiaomi will continue to introduce new smartphone lines with impressive technological innovations, strong performance, and competitive prices. The company is also improving customer experience through after-sales services, opening more warranty centres, optimising processes, and shortening warranty periods for better customer care.”

The company will continue to upgrade Xiaomi HyperOS, an operating system designed for the smart ecosystem ‘People x Car x House. This upgrade aims to provide a smoother experience when using applications and features on devices within the Xiaomi ecosystem, the representative added.

In the first quarter of 2024, Xiaomi reclaimed its position as the second-largest smartphone manufacturer in Vietnam, and the third-largest globally. During this period, the company reported a 56 per cent growth rate in the smartphone segment in Vietnam, with sales increasing by 288 per cent. Its market share grew from 5 per cent in January 2023 to 19 per cent a year later.

“Xiaomi’s impressive achievements in the Vietnamese market have significantly contributed to its global business results in 2023. This success is attributed to the company’s effective growth strategy in Vietnam and Southeast Asia. Continuous product innovation and competitive pricing have garnered significant consumer trust in Vietnam,” the representative said.

The first quarter of 2024 saw the launch of various new smartphones with 5G and AI features, including the Samsung Galaxy S24 series, Honor X9b 5G, and Xiaomi Redmi 12. In early July, Samsung also announced the global launch of both the Galaxy Z Fold 6 and Galaxy Z Flip 6.

OPPO has also introduced new smartphones, such as the Reno11 F 5G, Reno10 Pro+ 5G, and A98 5G. Meanwhile, China’s Realme, a relatively new entrant to the Vietnamese market in 2018, launched the 11 Pro+ 5G and 11 256GB models, among others.

According to FPT Shop, the Samsung Galaxy S24 series might kickstart a new trend of AI products in the local smartphone market, setting the stage for future developments. A representative said, “New 5G smartphones are entering the market, with manufacturers focusing on high-end segments as young local customers are more willing to pay for such devices.”

Besides Xiaomi and Samsung, Huawei and Honor are expected to introduce popular products to Vietnam in 2024, further stimulating consumer demand in the high-end phone segment, typically priced from $600 and above.

Vo The Vi, communications director of Honor Vietnam, said, “The high-end segment will no longer be dominated by familiar brands. New competitors will enter the market, increasing competition. Users will prioritise products with significant technological and design breakthroughs.”

According to Mobile World Co. Ltd., which operates over 1,000 stores nationwide selling electronic products, Samsung, Xiaomi, and OPPO are trending towards 5G-backed products and AI experiences as 2G and 3G phones phase out. The market will demand more 5G and high-tech devices in the future as 5G becomes commercialised.

Market research company Statista projects that the Vietnamese smartphone market would reach $4 billion in 2024, with a compound annual growth rate of 1.45 per cent from 2024 to 2028. It is anticipated that smartphone sales in Vietnam will reach 21.4 million units by 2024.

Vietnam is expected to enter the 5G commercialisation phase by late 2024 or early 2025. After securing 5G spectrum licences, mobile network operators in Vietnam are preparing for this significant milestone.

“We believe the Vietnamese smartphone market will become increasingly competitive,” said the Xiaomi representative. “With the continuous development of 5G technology, foldable phones, and AI integration, smartphone manufacturers will focus on bringing the latest innovations to market. Consumers are demanding better product quality, stronger performance, smarter features, unique designs, and more. This will inadvertently create a race among brands.”