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Smart Trend

SINGAPORE, May 11, 2014 (AFP) - Xiaomi may be little known outside China, but the fast-growing smartphone maker is at the forefront of a new wave of Asian brands challenging the dominance of Apple and Samsung with high-spec, low-price phones.

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"As smartphones become more commonplace... consumers in emerging markets will become more demanding and willing and able to spend on them," he said.

"Without a significant shift in branding and product portfolio low-cost manufacturers will see deteriorating prospects over the mid-to-long term.

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Nicole Peng, a mobile industry analyst with market research firm Canalys, said many Asian consumers of brands like Xiaomi are curious "early adopters" who want to have a first-hand experience of whether low-cost phones can actually match top models.

"This segment of the market are the geeks, if I can say that.

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They just want to experience the latest gadgets and are not so cost or brand-conscious," she said.

-- Hurdles remain --

Other analysts warn that significant hurdles remain, especially expanding overseas.

Xiaomi plans to move into nine other countries apart from Singapore this year.

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India's Micromax too retails outside its home country, with sales in Russia and Romania.

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