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

New Delhi: Smartphone maker Xiaomi is expected to bring a number of generative AI user applications to its smartphones in India by the end of this fiscal, three people with knowledge of the matter said. The move, which could begin with Xiaomi’s upper-mid range smartphones priced at around ₹40,000, may help democratize generative AI features—which have so far largely remained reserved for premium smartphones.

The move is expected to follow the launch of the Xiaomi 14T smartphone for global markets in Europe last month. The flagship-grade smartphone was launched with Google’s Gemini suite of generative artificial intelligence features, including Google’s ‘Circle to Search’ and AI photo editor—which can be found in the latter’s own Pixel range of smartphones.

The launch will bring Xiaomi up to speed with fellow smartphone brands such as Apple, Oppo, Samsung and Google itself in terms of generative AI features. While an exact timeline for the rollout could not be ascertained, two of the three people cited above said that an India rollout of generative AI features across Xiaomi’s lineup could take place in line with next year’s Mobile World Congress event 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,” said one of the people, a senior industry consultant, cited above.

Xiaomi market share

As of the June quarter this year, Xiaomi was the second biggest smartphone brand in India by volume, accounting for over 4.7 million (13.5%) of all smartphones sold in India. The company had led the smartphone market in India for five straight years between 2018 and 2022. This makes its imminent generative AI rollout an important one for the industry, since it may set the ball rolling on how other brands approach this feature.

A second industry consultant, who is among the three cited above, added that Xiaomi’s marketing efforts for the generative AI features will soon 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 consultant said.

Xiaomi did not reply to Mint’s email seeking a comment on the introduction of the feature.

Entry price for AI

At present, generative AI’s entry point in smartphones is lofty—averaging a price point of around $850 (~ ₹70,000). Oppo, meanwhile, said in July that the company will introduce “over 100 generative AI features” in phones across price ranges by the end of this year.

The introduction of these features at varying price points could be one way for brands to market this feature as a useful one to consumers. Earlier this month, Mint reported that smartphone makers are struggling to convince consumers that generative AI features are worth paying a premium for. This may lead to a tangible change in market strategy, wherein basic generative AI features may come to smartphones of all price ranges—while more advanced features, such as the ability to erase or add objects from photographs—may get a ‘freemium’ model.

Navkendar Singh, associate vice-president at market research firm IDC India, said, “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.”