Xiaomi expands clout in S. Korea market

By Park Sae-jin Posted : January 18, 2016, 15:23 Updated : January 25, 2016, 13:35


 

[Aju News DB]




South Korea's major online shopping mall 11st Street on Monday announced a deal with ZMI Communication Technology, an affiliate of Chinese tech giant Xiaomi, reflecting the growing popularity of Chinese gadgets among fastidious consumers here.

The South Korean partner will distribute ZMI's smartphone-related products and work out joint marketing projects. ZMI produces accessories for smartphones and other electronics goods.

"This deal underlines the growing popularity of Chinese products in South Korea, and we will step up sales of Xiaomi gadgets," an 11st Street official told Aju News.

The online shopping mall sold some 3,000 ZMI battery packs in April last year under a one-time deal.

Helped by an increase in sales of budget phones, Chinese firms led by Xiaomi have sold more gadgets in South Korea's competitive market.

South Korean mobile carrier LG Uplus has sold about 20,000 units of the Huawei Y6 smartphone with a price tag of 154,000 won (US$126) since its launch here a month ago.


However, it may take a while until Xiaomi smartphones are officially released in South Korean market. There are some Xiaomi smartphones used in South Korea, but the most of them were brought in by individual users who purchased them online via resellers.

Although many wait for the cheap, but cost-effective smartphones to be officially released, it faces obstacles. Analysts point out that, international patents and licenses regarding the Xiaomi smartphones are the major obstacle. Some popular models have features which may violate international patent law and licenses outside mainland China. Analysts say if the smartphones are officially sold overseas, Xiaomi could face great amount of fine due to patent violations.

Last year, Xiaomi Xiaomi was restricted from selling its phones in India for infringing on Ericsson's standard essential patents (SEP) but later signed a new deal with Qualcomm, enabling the smartphone manufacturer to produce and sell smartphones with Qualcomm chipsets installed.

Charles Lim

 
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