Xiaomi to hitch mainstream gen AI push in India with Google partnership

New Delhi: Smartphone maker Xiaomi is anticipated to carry a variety of generative AI person purposes to its smartphones in India by the top of this fiscal, three folks with data of the matter mentioned. The transfer, which might start with Xiaomi’s upper-mid vary smartphones priced at round ₹40,000, could assist democratize generative AI options—which have to this point largely remained reserved for premium smartphones.

The transfer is anticipated to observe the launch of the Xiaomi 14T smartphone for international markets in Europe final month. The flagship-grade smartphone was launched with Google’s Gemini suite of generative synthetic intelligence options, together with Google’s ‘Circle to Search’ and AI photograph editor—which might be discovered within the latter’s personal Pixel vary of smartphones.

The launch will carry Xiaomi in control with fellow smartphone manufacturers equivalent to Apple, Oppo, Samsung and Google itself by way of generative AI options. While an actual timeline for the rollout couldn’t be ascertained, two of the three folks cited above mentioned that an India rollout of generative AI options throughout Xiaomi’s lineup might happen in step with subsequent 12 months’s Mobile World Congress occasion in Barcelona.

“Generative AI still does not have a hook in terms of compelling users to pay extra for it. However, a brand like Xiaomi, which led the India smartphone market for five years—and continues to be a big part of it even now, cannot afford to fall behind the curve. Introduction of generative AI features in Xiaomi phones may also have been expedited by Oppo’s announcement of across-the-board generative AI features being added to all of its smartphones,” mentioned one of many folks, a senior business advisor, cited above.

Xiaomi market share

As of the June quarter this 12 months, Xiaomi was the second greatest smartphone model in India by quantity, accounting for over 4.7 million (13.5%) of all smartphones offered in India. The firm had led the smartphone market in India for 5 straight years between 2018 and 2022. This makes its imminent generative AI rollout an essential one for the business, since it could set the ball rolling on how different manufacturers strategy this function.

A second business advisor, who’s among the many three cited above, added that Xiaomi’s advertising efforts for the generative AI options will quickly be ramped up in a bid to gauge market demand “see up to how much are users willing to pay for AI as a key feature.”

“One important bit to note is that Xiaomi has used AI as a marketing vehicle across its smartphone range for a while—be it in camera or software overall. Within AI, it is as yet unclear if generative AI will really make a big enough difference. But, given the prevalence of generative AI today, the brand can’t not offer it as a feature at some point—and the effective way of doing it is by reducing the price point at which such features are available,” the second advisor mentioned.

Xiaomi didn’t reply to Mint’s e-mail searching for a touch upon the introduction of the function.

Entry worth for AI

At current, generative AI’s entry level in smartphones is lofty—averaging a worth level of round $850 (~ ₹70,000). Oppo, in the meantime, mentioned in July that the corporate will introduce “over 100 generative AI features” in telephones throughout worth ranges by the top of this 12 months.

The introduction of those options at various worth factors might be a method for manufacturers to market this function as a helpful one to shoppers. Earlier this month, Mint reported that smartphone makers are struggling to persuade shoppers that generative AI options are value paying a premium for. This could result in a tangible change in market technique, whereby fundamental generative AI options could come to smartphones of all worth ranges—whereas extra superior options, equivalent to the power to erase or add objects from pictures—could get a ‘freemium’ mannequin.

Navkendar Singh, affiliate vice-president at market analysis agency IDC India, mentioned, “Generative AI is not a compelling hook for those looking to buy a smartphone. For them, in the long run, there are certain base features that may be integrated into a smartphone’s interface for a more ubiquitous usage experience. Advanced features are sure to see users paying in some form—either ad-supported or through a direct subscription fee, in order for companies to recover some of the cost of partnerships or engineering that they incur.”