China’s Realme eyes Europe’s high-end smartphone market with new launch

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  • To begin promoting premium GT 2 Professional telephone throughout Europe in Feb
  • GT 2 Professional priced at $700-$800, close to different high-end telephones

SHENZHEN, China, Jan 26 (Reuters) – China’s Realme will enter Europe’s high-end handset market subsequent month with its priciest ever machine, its CEO advised Reuters, because it seems to be to develop past its finances choices and promote 50% extra smartphones globally this 12 months.

The Shenzhen-based firm is amongst a number of Chinese language handset companies which were making aggressive strikes to grab world market share from Huawei Applied sciences (HWT.UL), after stepped-up U.S. sanctions hobbled the previous high smartphone maker’s provide chains and compelled it to retreat.

Realme plans to begin promoting its premium GT 2 Professional telephone throughout Europe in February for $700-$800, founder and CEO Sky Li stated.

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That is virtually double the 349 euros ($395) steered value of the GT Grasp Version it at the moment sells via Amazon and close to the costs of different high-end telephones from market leaders Apple (AAPL.O) and Samsung (005930.KS).

“We expect it is a vital, market, and an enormous marketplace for high-end telephones,” Li stated.

With the pandemic affecting financial situations, demand for smartphones is sluggish and customers are ready longer to improve, however because the world’s quickest rising smartphone firm, Realme can buck that development, Li added.

Counterpoint Analysis estimates Europe’s smartphone market generated revenues of $80.65 billion within the first 11 months of 2021, of which high-end units accounted for $55.56 billion.

“Virtually all the development is pushed by the high-end, which may be attributed primarily to the profitable premium fashions of Apple and Samsung,” Counterpoint senior analyst Yang Wang stated.

Apple, whose costs for its iPhone 13 begin at round $850, was Europe’s best-selling producer final quarter, adopted by Samsung and Xiaomi (1810.HK), whose telephones are priced at round $900 and $700 respectively, in response to Counterpoint.

Knowledge from consultancy IDC exhibits the European market was similar to the US within the first three quarters of 2021 by way of smartphone revenues, however lagged behind China.

‘NO DISTRACTIONS’

Spun off from fellow Chinese language smartphone maker Oppo in 2018, Realme was the world’s sixth-biggest smartphone vendor as of end-September, in response to Counterpoint, with robust gross sales in India, Southeast Asia and Japanese Europe.

Realme, Oppo and different rivals Vivo and Oneplus hint their origins again to BBK Electronics, a Shenzhen-based conglomerate.

Li stated he expects the G2 Professional telephone to attraction to European prospects as a result of it is among the first telephones to launch with Qualcomm’s (QCOM.O) new flagship Snapdragon 8gen1 processor, which guarantees greater velocity and energy effectivity.

Realme bought 60 million handsets in 2021 globally and goals to promote 90 million this 12 months and over 100 million in 2023, Li stated.

The corporate, like its friends, has been hit by semiconductor shortages over the past 12 months, however Li stated the constraints might ease by the second half of 2022.

Whereas friends together with Oppo, Vivo, Xiaomi are making forays into processors and electrical vehicles, Realme will keep centered on telephones, “with no different ideas or distractions”, Li stated.

“It is not simple to outlive in an business so filled with specialists, so we mustn’t do issues past our potential,” he stated.

($1 = 0.8843 euros)

(This story corrected GT 2 Professional value to $700-$800, not 700-800 euros, after firm corrected it. Additionally fixes GT Grasp Version value to 349 euros, not $349.)

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Reporting by David Kirton; Enhancing by Himani Sarkar

Our Requirements: The Thomson Reuters Belief Rules.

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