As the Indian smartphone market stands to peak in 2026, the era of spec-sheet wars may soon end. For Xiaomi, which has built its brand on a foundation of disruptive pricing and high-end features that will appeal to the masses, the upcoming launch of the Xiaomi 17 series is much more than just a new product cycle. This represents a fundamental change in philosophy.

In an exclusive interview with Sudheen Mathur, Chief Operating Officer (COO) of Xiaomi India, the veteran industry leader laid out a roadmap that acknowledges a hard truth – the days of ultra-low-cost phones are numbered. Amid the global rise in component costs and a maturing consumer base, Xiaomi is switching from a value-for-money champion to a value-for-experience powerhouse.

Mathur is not familiar with the volatile nature of the Indian mobility sector. Having joined the industry in 1996, when outgoing calls cost Rs 32 per minute and pager technology was at its peak, Mathur has seen the rise and fall of giants like Nokia, Ericsson and Siemens.

According to Mathur, the smartphone industry reaches a turning point every five to six years. Those who fail to innovate during these changes disappear.

“Only those brands that have survived have shown strong resilience and have evolved with the evolving needs of the consumer and technology,” says Mathur. For Xiaomi, surviving this next stage means moving away from the Internet company tag of 2014 and becoming a connected device ecosystem company.

Xiaomi has come a long way. Today, it is a Fortune 500 company operating in more than 100 countries. Mathur highlighted a new global trend where the market has consolidated in the SAM era: Samsung, Apple and Xiaomi.

Globally, Xiaomi has maintained its position as the third largest smartphone brand for almost 20 consecutive quarters. It’s this scale that the company plans to leverage as it expands from phones to “humans x car x home.”

“We have moved from a smartphone-first strategy to a human x car x home strategy. ‘Human’ refers to personal devices like phones and tablets, ‘car’ is our entry into EVs, and ‘home’ is our vast AIoT ecosystem.”

Mathur said that while phone volumes are stagnating, other categories are growing rapidly. For example, tablets have seen 145 percent year-on-year growth in India. He says that in 2026, Xiaomi will “double down” on these non-phone categories to create a holistic lifestyle brand.

elephant in the room

For years, Indian consumers used to make purchasing decisions based on an Excel sheet of specifications: highest megapixels, fastest processor and lowest price. But the market has stabilized. India currently sells around 140-150 million smartphones annually, and this volume is no longer growing at a breakneck pace. Instead, premiumization has taken over.

“People are keeping their devices for longer periods of time, moving from 12-month upgrade cycles to 24 or even 36 months,” says Mathur. “They’re no longer asking for 200 megapixels, they’re asking: ‘What can this 50-megapixel camera actually do? Does it have AI? How is the color science?'”

This change has forced Xiaomi to move from Value for Money (VFM) to Value for Experience (VFE). The focus now is on bringing professional-grade photography to the Xiaomi series with the Leica partnership and more thoughtful integration of AI and other nuances into devices with HyperOS.

While Xiaomi has built its reputation on “honest pricing,” Mathur warned that external economic factors are becoming impossible to ignore. Global demand for AI-enabled hardware – the AI ​​supercycle – has driven up memory prices. Mathur expects this supply shortage to persist for at least a few years. Additionally, a stronger dollar has a “dual effect” on manufacturing costs.

“Not everything can be assimilated,” admits Mathur. “Of course, prices will increase due to memory costs. We expect this to be a reality in the next few years.” However, he believes the impact will be mitigated by the ubiquity of EMI and affordability plans, which now account for more than 50 per cent of purchases.

If you’ve noticed that Xiaomi has had fewer launches recently, Mathur says, this is intentional.

“The market has matured,” he explains. “In the early days of 4G, consumers wanted a new experience for every Rs 500. Now, they want stability and longevity.”

The road to Xiaomi 17 series

Mathur confirmed the soon launch of Xiaomi 17 series in India. Considering that Xiaomi has been continuously launching its Ultra phones in India for the last few years, we can expect the Xiaomi 17 Ultra to also arrive alongside the Xiaomi 17. Pro Xiaomi phones have been a no show. It will be interesting to see if there are any changes in plans with the Xiaomi 17 Pro.

As we approach the launch of the Xiaomi 17 series, the message from above is clear: Expect a device that defines value for the experience era. It will likely be more expensive than its predecessor, but it will aim to justify that cost through unprecedented integration with the broader Xiaomi ecosystem. The company is betting that the Indian consumer, now empowered by easy EMI options and hungry for better technology, is willing to pay more for a device that lasts longer and does more.

But while the flagship No. series has been confirmed, Xiaomi is leaving foldables for the unforeseeable future. While competitors are rapidly moving into the foldable space, Xiaomi is playing the waiting game. “We don’t want to launch a product just for show. It has to be meaningful,” says Mathur.

The brand believes that for the Indian market, the focus on the camera experience of the Xiaomi 17 series offers more value than the foldable form factor which is still in its niche stage. He further added, “It is not difficult to get the product, the technology is there. But we believe in doing a few things well rather than getting lost in too many categories.”

To support its pivot towards premium, Xiaomi is radically changing the way it interacts with customers. You can’t sell a Rs 1,00,000 flagship – which is an indirect hint to the ballpark pricing of the Xiaomi 17 Ultra – through an Excel sheet alone, you need “touch and feel”.

Xiaomi has transitioned to an omni-channel approach, meaning the price and experience should be the same whether you buy online or at a local retail store. They’re investing heavily in “shop-in-shop” layouts where consumers can test AI features, like removing backgrounds from photos or creating “AI sky” effects in real time.

The company recently opened 10 premium service centers in major cities, promising 98 percent same-day repairs and a “loaner handset” if the repair takes more than two hours. The interesting thing is that these centers are also becoming sales centers. “We are amazed, people are coming for repairs and buying robo-vacuum cleaners from service centres.”

As Sudhin Mathur says, “At every turn, we only want to go up. We sincerely hope that in 2026, we will not disappoint the fans who expect more from Xiaomi.”