Xiaomi Challenges Samsung-Apple Dominance in South Korean Smartphone Market | Be Korea-savvy

Xiaomi Challenges Samsung-Apple Dominance in South Korean Smartphone Market


Xiaomi is looking to establish its first physical store in Seoul, potentially disrupting the long-standing dominance of Samsung and Apple. (Image courtesy of Yonhap)

Xiaomi is looking to establish its first physical store in Seoul, potentially disrupting the long-standing dominance of Samsung and Apple. (Image courtesy of Yonhap)

SEOUL, Jan. 20  (Korea Bizwire) — In a move to penetrate South Korea’s tightly controlled smartphone market, Xiaomi is looking to establish its first physical store in Seoul, potentially disrupting the long-standing dominance of Samsung and Apple. 

The Chinese tech giant, which recently established a Korean subsidiary, launched its first product, the Xiaomi 14T, on January 15. The company has priced the device aggressively at 599,800 won for the 12GB+256GB model and 649,800 won for the 12GB+512GB variant — significantly lower than its European price of approximately 970,000 won, in what appears to be a strategic move to capture Korean consumers’ attention. 

No manufacturer besides Samsung and Apple has managed to secure more than 3% market share in South Korea over the past six years, following LG Electronics’ exit from the market in 2021. According to Counterpoint Research, Samsung commanded 80% of the market in the third quarter of last year, while Apple held 19%.

Xiaomi plans to counter Samsung’s upcoming product launch on January 22 by releasing its Redmi Note 14 Pro 5G through all three major Korean telecom carriers. The company is currently exploring locations for its first offline store, with plans to open in a major Seoul shopping center.

The Xiaomi 14T and Redmi Note 14 Pro 5G are the first smartphones introduced to the Korean market. (Image provided by Xiaomi)

The Xiaomi 14T and Redmi Note 14 Pro 5G are the first smartphones introduced to the Korean market. (Image provided by Xiaomi)

Industry analysts suggest that Xiaomi’s competitive pricing, combined with the growing popularity of Chinese shopping platforms like AliExpress and Temu, and the current economic downturn, could help the company gain market share. Currently, Xiaomi’s presence in Korea remains minimal, with an estimated 1% market share based on its online community of 510,000 members. 

Addressing security concerns, Xiaomi announced at a January 15 press conference that it maintains servers only in Europe and Singapore to protect user data, and plans to expand its offline presence to provide after-sales service. 

“Older consumers often feel that advanced smartphone features like AI are unnecessary,” said Lee Eun-hee of Inha University’s Consumer Studies Department. “As Korean consumers have gained familiarity with Chinese products through online shopping platforms, there could be demand for Xiaomi products.”

However, industry experts remain skeptical about any significant shift in the market structure. Samsung and Apple enjoy exceptionally high brand loyalty among Korean consumers, with each brand’s online communities boasting millions of members across dozens of forums. 

Choi Chul of Sookmyung Women’s University’s Consumer Economics Department noted, “There’s a strong perception that Chinese products are inferior due to their low prices. Korean consumers heavily emphasize smartphone functionality and brand value, making dramatic changes in preference unlikely.” 

Adding to Xiaomi’s challenges are its limited customer service network compared to Samsung and Apple, its use of a proprietary operating system that complicates device integration, and the absence of popular payment solutions like Samsung Pay. Furthermore, Samsung plans to defend its market position by launching the “New Galaxy AI Subscription Club” service on January 24, offering benefits including up to 50% guaranteed residual value upon the return of a device. 

The upcoming Galaxy S25 series is expected to feature better Galaxy AI capabilities compared to its S24 predecessor, with regular, Plus, and Ultra models, along with a new slimmer variant anticipated. Similarly, the Redmi Note 14 Pro will emphasize various AI functions, including Google Gemini, AI translation, and AI image editing capabilities.

Kevin Lee (kevinlee@koreabizwire.com) 

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