Chinese newcomer Realme desired to enter international markets with its flagship phones. Nevertheless it plays in the mid-range of the market, where it faces stiff competition from rivals comparable to Xiaomi.
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BARCELONA, Spain – Chinese smartphone maker Realme desires to stand out in a crowded space of mid-range devices. On Tuesday, it released a smartphone that it claims can be fully charged in 9 minutes and 30 seconds.
The company presented its GT3 smartphone at the Mobile World Congress in Barcelona, the largest mobile industry fair in the world. It desires to expand its business outside of China and joins the group of Chinese suppliers who wish to goal their products to foreign markets.
The GT3 starts at $649, putting it in a particularly competitive segment where Realme will compete against Chinese rivals comparable to Xiaomi and Oppo, which provide inexpensive devices with high parameters.
“Realme is chasing the low-margin segment of the market by offering products at extremely competitive prices aimed toward value-seekers,” Ben Wood, head of research at CCS Insight, told CNBC via email.
“Nevertheless, that is a particularly difficult a part of the market to play. Low single-digit margins could evaporate if the dollar changes quickly, component prices increase or shipping costs increase – all headwinds Realme has needed to face.”
Looking for to expand overseas, the company introduced its flagship GT2 and GT2 Pro phones in Europe last yr. But times have been tough, with the global smartphone market in 2022 experiencing its worst yr since 2013 in terms of shipments.
Sky Li, CEO of Realme, told CNBC last yr that the company goals to sell 85 million phones worldwide by 2022. The company has not published updated data. Market research firm Strategy Analytics estimates the company has shipped 52 million smartphones, down 20% year-on-year. The tracking numbers indicate the variety of devices Realme is shipping to retailers on the market, and so they are usually not equal to sales, but they indicate the demand for the company’s phones.
In keeping with Counterpoint Research, Realme’s shipments in Europe, a key region where international expansion is concentrated, fell 44% year-on-year in the fourth quarter of 2022. Its European market share fell to 4% from 6% in the same period a yr earlier.
“The biggest challenges facing Realme in Europe and the US in 2023 are the lack of a retail presence with powerful operators comparable to Vodafone” and “a brand perception that is less prestigious than Apple or Samsung,” said Neil Mawston, CEO of Strategy Analytics , in an interview with CNBC via email.