Xiaomi's 100,000-won smartwatch triggers sellout fears — and a Samsung emergency

Xiaomi's Redmi Watch 6 smartwatch [Xiaomi Korea website]

Can a smartwatch priced around 100,000 won ($66) really generate a buzz?

Xiaomi sold out its ultra-budget Redmi Watch 5 Lite — priced in the 50,000-won range — within a week of its launch last year and is now making another push into the South Korean market with a new model in the 100,000-won range. The new watch costs more than the Lite, but still undercuts rival models priced upward of 500,000 won by a wide margin. With early sales showing positive signs, the question is whether Xiaomi can repeat its sellout performance.

Samsung, meanwhile, has seen its smartwatch market share slip to fourth place and has recently cut Galaxy Watch 8 prices by around 40 percent in select markets, but a comeback is proving difficult.

According to industry sources, Xiaomi began pre-orders for its new Redmi Watch 6 in South Korea on Thursday and will launch full sales Monday. Word of mouth has spread quickly since pre-orders opened, and early sales momentum appears strong.

Price is by far the biggest selling point. The Redmi Watch 6 carries a suggested retail price of 139,800 won — roughly one-fifth the starting price of the Apple Watch, which begins at 599,000 won. It also undercuts Apple's entry-level Apple Watch SE3, priced at 369,000 won.

Xiaomi is also touting a battery life of up to 24 days, fitness and health-tracking features, and compatibility with both Apple and Android devices.

The Apple Watch Series 11, starting at 599,000 won. [Apple website]

Xiaomi's smartwatches have shown particular strength even in South Korea's domestic market, which has historically been resistant to Chinese products. The previous model, the Redmi Watch 5 Lite, launched in South Korea in early last year at 59,800 won and sold out within a week. Consumers called it a "shockingly affordable" device, and word of mouth spread rapidly around its value-for-money appeal.

As Xiaomi's momentum continues, the global smartwatch market appears to be consolidating around a three-way contest among Apple, Huawei and Xiaomi.

According to market research firm Counterpoint Research, Apple held a 23 percent share of the global smartwatch market in the first quarter of this year, followed by Huawei at 17 percent and Xiaomi at 10 percent.

Samsung, by contrast, sits in fourth place with a 5 percent share — down from 7 percent last year.

In response, Samsung has moved aggressively to cut prices on key products. The company has reduced Galaxy Watch 8 series prices by up to around 40 percent, depending on the model, in major markets including the United States and the United Kingdom. The Galaxy Watch 8 series averages around 500,000 won, though prices vary by configuration. Samsung is also offering discounts of more than 10 percent in the domestic market.

Whether Samsung can use its upcoming Galaxy Watch 9 to claw back market share is another key question. Samsung plans to unveil the Galaxy Watch 9 and Galaxy Watch Ultra 2, alongside new smartphones, at an Unpacked event in London on July 22.

sjpark@heraldcorp.com