Chinese smartphone manufacturer Xiaomi has released its first wearable device the Mi Band. The device which includes fitness monitoring functions is being offered for sale in China for just 79RMB (€9.50).
Low cost
The pricing of the plastic fitness band makes it up to 10 times cheaper than some competitors on the Chinese market, like the Fitbit Flex. Profit margins are likely to be tight, but by offering it at such a low price Xiaomi is positioning for truly high volume consumer sales. Putting it easily within the reach of the normal Chinese worker who has an average monthly wage of 2,400 RMB.
The pricing of the plastic fitness band makes it up to 10 times cheaper than some competitors on the Chinese market, like the Fitbit Flex. Profit margins are likely to be tight, but by offering it at such a low price Xiaomi is positioning for truly high volume consumer sales. Putting it easily within the reach of the normal Chinese worker who has an average monthly wage of 2,400 RMB.
Mi Band was launched on 22 July at the National Convention Centre in Beijing, alongside the latest Xiaomi smartphone, the Mi 4. The new 1999RMB (€240) handset's design has been heavily influenced by Apple's iPhone and the joint launch is indicative of one of the reasons the Mi Band is being sold so cheaply.
Xaiomi's ecosystem
The Chinese producer now has a suite of devices - WiFi dongles, set-top television boxes, handsets and tables - which work on its software. The Mi Band is being deployed not just to keep customers who want wearables within the Xiaomi fold, but also to enhance other devices.
The Chinese producer now has a suite of devices - WiFi dongles, set-top television boxes, handsets and tables - which work on its software. The Mi Band is being deployed not just to keep customers who want wearables within the Xiaomi fold, but also to enhance other devices.
The Mi Band has been configured to operate as a security device to unlock an owner's Xiaomi smartphone. Besides this and its very low price its sensors, pedometer, sleep monitor and alarm, do not make it stand out from the crowd of other fitness bands.
Moment of truth
In western markets, fitness bands have principally been bought by fitness enthusiasts. By making a wearable which costs only slightly more than a cinema ticketXiaomi is offering it as product for everyone.
In western markets, fitness bands have principally been bought by fitness enthusiasts. By making a wearable which costs only slightly more than a cinema ticketXiaomi is offering it as product for everyone.
Hence data on the Mi Band's use may answer a key question about wearable technology - whether the functionality it offers is appealing enough to the everyday consumers to make them part of their lives?
Phones for export
Xiaomi is attempting to secure market presence for its products in a number of key growth countries later this year. These include the states of south east Asia - like Thailand, Singapore, and Indonesia - as well as in developing consumer markets further afield like Brazil, Mexico, Russia and Turkey.
Xiaomi is attempting to secure market presence for its products in a number of key growth countries later this year. These include the states of south east Asia - like Thailand, Singapore, and Indonesia - as well as in developing consumer markets further afield like Brazil, Mexico, Russia and Turkey.
It remains to be seen whether the Mi Band is given much of a profile in this initiative, behind the Mi handsets, as the Beijing-based firm pushes to become a truly global brand.
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