Xiaomi Mi Drone (Photo : Twitter)
Xiaomi's product lines already include smartphones, tablets, fitness trackers, and Internet of Things (IoT) gadgets including smart TV set-top boxes and rice bookers. After challenging Apple with sleek budget phones it is now adding drones to its repertoire. The China-based company has plans to unveil its Mi Drone on May 25, Wednesday, which will reportedly have a price tag of about $600.
Xiaomi's marketing director has reported that the unmanned aerial vehicle (UAV) will have a small profit margin.
FIMI Technology built the new drone with 4K ultra-high definition (UHD) video. The price is lower than competing drones including ones from tech company DJI whose low-end models are about $800, according to PC Magazine.
Last year DJI launched a flagship store in Shenzhen. The retail store has over 8,600 square feet (2,620 square meters) of retail space that gives customers a hands-on experience with the company's gadgets.
Companies such as 3DRobotics and DJI have become the top drone manufacturers. However, other firms such as GoPro and Xiaomi are now battling for market share.
Mi Drone could attract consumers who are looking for budget-friendly devices with all the features on high-end models. Xiaomi used that business plan in the smartphone market. It has helped the company to take market share from other phone makers including Apple and Samsung.
Xiaomi's success in the smartphone market was based on its sales model that sold inexpensive handsets directly to customers on the web. However, other companies have copied its model. Last year Xiaomi was unable to hit its sales target of 100 million mobile devices and was passed by Huawei.
Li Zhuoqi is the marketing director for Xiaomi. He explained that the company focuses on producing good quality products that also have affordable price points.
Xiaomi will have to compete with many Chinese drone manufacturers. The top-selling drone at Amazon is now the SYMA X5C Explorers that costs $43.50, according to Tech Crunch.
Drones are still a small market. However, sales are expected to grow from nearly 4 million units this year to 16 million units by 2020.
Xiaomi was valued at $45 billion following a 2014 funding round. Chief Financial Officer Shou Zi Chew told Bloomberg Television the company does not plan to become a publicly-traded company.
