The red rice bracelet was sold for 99 yuan, and the impact on Huami depends on who Xiaomi cooperated with to launch this product.
After Xiaomi Watch Color, Huami Technology (HMI.US, hereinafter referred to as “Huami”) may usher in a “competitor of the same door”.
On the afternoon of April 3rd, at the rice flour festival new product launch conference, Redmi (hereinafter referred to as “Red Rice”) the first wearable device Red Rice bracelet was officially released, the price is 99 yuan, the crowdfunding price is 95 yuan Will be officially launched on April 9.
Redmi bracelet (Image source: Xiaomi official)
Checking the pricing of Xiaomi Bracelet series products, we found that Redmi Bracelet is Xiaomi ’s first bracelet product that sells for less than 100RMB after the first generation of Xiaomi Bracelet sells for 79RMB.
Including Redmi bracelets, Xiaomi Mall currently has 3 bracelet products on sale, of which Xiaomi Band 3 and Xiaomi Band 4 are launched by Xiaomi in cooperation with Huami, and their sales will directly affect Hua Overall revenue.
Mapping (data source: Huami’s prospectus and financial report) (Huami has not announced the composition of revenue from different brands in 2019)
From the time of the release of the Xiaomi bracelet and the corresponding Huami revenue composition, in 2017, because there was no new release of the Xiaomi bracelet, the growth rate of the portion of Huami’s revenue from the Xiaomi brand in that year fell to 13%, which is obviously Pulled down the overall revenue growth rate.
This means that if less thanThe 100-yuan Redmi bracelet is a collaboration between Xiaomi and other eco-chain manufacturers and affects the sales of Xiaomi bracelet 4, which will indirectly affect the revenue of Huami in the second quarter of 2020.
Conversely, if the Redmi bracelet is still launched by Xiaomi in cooperation with Huami, then will will have a positive impact on Huami’s revenue.
It is also to prevent the Xiaomi brand products from affecting its own revenue too much. In recent years, Huami has continuously increased its Amazfit private label products, launched wearable products covering multiple price points, and included TWS headsets, running And other products including sports shoes and clothing.
However, in the market of Xiaomi’s low-priced smart bracelets below 200 yuan, Huami has not launched the corresponding Amazfit bracelet.
As for whether the Redmi bracelet is a cooperation between Xiaomi and Huami, and the potential competition that may be brought to Huami’s products, please verify with Huami, without receiving a specific response.
In the financial report for the fourth quarter and full year of 2019 previously released, Chairman and CEO Huang Wang mentioned that the partnership with Xiaomi will continue and it is expected that the Mi Band 5 will be launched later this year.
Before Xiaomi officially announced that it would release the Redmi bracelet, Huami did not mention the existence of this product.
As of press time, Redmi Bracelet has not been listed on Xiaomi Mall or Youpin Mall, nor can we confirm the product partner from the product details page.
(Cover image from Xiaomi official)