Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Infotech/  Xiaomi said to plan first drone at $610 in challenge to DJI
BackBack

Xiaomi said to plan first drone at $610 in challenge to DJI

Xiaomi is joining the crowd of upstarts in the drone market, hoping to take share from Shenzhen-based DJI, the leading seller of consumer devices

A file photo of the ‘Phantom 2’ drone by DJI company flies during the 4th Intergalactic Meeting of Phantom’s Pilots (MIPP) in Paris. Photo: Charles Platiau/ReutersPremium
A file photo of the ‘Phantom 2’ drone by DJI company flies during the 4th Intergalactic Meeting of Phantom’s Pilots (MIPP) in Paris. Photo: Charles Platiau/Reuters

Hong Kong: Xiaomi Corp., the Chinese smartphone maker that challenged Apple Inc. with sleek designs and low prices, is planning to introduce its first drone at a price more than 20% below a comparable product from market leader SZ DJI Technology Co., according to a person with direct knowledge of the matter.

The drone, made by FIMI Technology, will record high-resolution 4K video and cost about 4,000 yuan ($610), the person said, asking not to be identified as the details are private. That compares with $799 for the Phantom 3 4K device on DJI’s website.

Xiaomi shot to the top of China’s smartphone market by offering inexpensive devices packed with premium components, undercutting established rivals including Apple and Samsung Electronics Co. The price of its first entry into the nascent drone market suggests a similar strategy will be used to win customers for unmanned flying vehicles as smartphone growth slows.

“While making good-quality products, the price point has to be competitive as well," Li Zhuoqi, a marketing director for Xiaomi, said without disclosing a price or sales estimates. “We have set a very thin margin for drones but the product line is set to be profitable."

Xiaomi is joining the crowd of upstarts in the drone market, hoping to take share from Shenzhen-based DJI, the leading seller of consumer devices. Today drones are still largely novelty items, with sales expected to reach almost 4 million this year and forecast to rise to 16 million by 2020.

Newer players are targeting the lower-tiered part of the market, such as Syma Toys and Hubsan. Xiaomi is betting that it can capture a part of the consumer drone market that Grand View Research expects will reach $4.19 billion by 2024.

Beijing-based Xiaomi last week said it will unveil its first drone on 25 May, without detailing an expected price or specifications.

Xiaomi has already begun to expect slowing growth in the Chinese smartphone market as it matures.

“The natural ceiling for the market is about 500 million phones," chief financial officer Shou Zi Chew said in an interview with Bloomberg Television earlier this month. Smartphone shipments in China reached a record 438 million units last year, according to Strategy Analytics.

After capturing smartphone customers with its online flash sales model that sold inexpensive smartphones directly to consumers, bypassing retail outlets and wireless carriers, Xiaomi has struggled as others copied the model. Xiaomi missed its target of selling 100 million devices in 2015 and was overtaken by Huawei Technologies Co.

Xiaomi, which was valued at $45 billion after a 2014 funding round, has no plans for an initial public offering and doesn’t need to raise money, Chew said. DJI’s valuation hit $10 billion last year, according to CB Insights. Bloomberg

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 24 May 2016, 02:29 PM IST
Next Story footLogo
Recommended For You
Infotech Stocks
₹1,547.25-0.26%
₹1,484.10.99%
₹4,928.750.15%
₹3,837.51.2%
₹472.21.66%
Switch to the Mint app for fast and personalized news - Get App