Rapid-growing smartphone brand Realme declared it would inaugurate and manufacture its tablet and laptop manufacturing in India even as it plans to enter the intelligent consumer durable business with smart washing machines and air purifiers.
The Chinese handset producer anticipates smashing into the top three brands with 30 million sales by December 2021. Nevertheless, it warned about the chipset shortage. It announced that it could influence its overall extension as satisfying the demand could become a difficulty.
Madhav Sheth, Vice President, Realme and Chief Executive Officer, Realme India & Europe, reported ET, "We will be manufacturing tablets and laptops locally before the end of this year. We have recently started making wearables in India and will extend local manufacturing to more products".
Oppo, Wingtech Mobiles and DBG technology are Realme's manufacturing partners for smartphones. Simultaneously, Bhagwati and Videotex make smart TVs for the brand. It has now commenced striving with contract manufacturer Khy Electronics to produce Realme wearables.
Earlier this week, the company besieged into the laptop and tablet fragments it resembles developing its non-handset business.
Further, Sheth continued, "We have been doing well in non-handset business. We ventured into the TWS segment with AMC tech and brought down prices. In Smart TVs and TWS, we have more than a 20% market share. In IoT as a segment, we are creating an ecosystem to create bigger business opportunities for ourselves".
Realme is exceptionally concentrating on education as a market with its tablets and laptops and is partnering with ed-tech companies to extend bundled services.
"Our tablets and laptops will target e-learning and even business users. There is a pent up demand in the market due to the pandemic, which we want to fulfil. We are looking to disrupt both segments with specifications and pricing. We don't want customers to compromise on specs due to budget constraints," Sheth added.
The non-handset business gives 10% to Realme India's overall business. "The A-IoT category is small, but we want it to become as big as 30% towards the whole business. The entire ecosystem will become smart over some time. This segment is going to grow for us and the industry."
Sheth announced that Realme would thrust other tech devices into other smart categories like washing machines and water purifiers before Diwali. "All these things will be connected to our handsets via the apps and will be part of our A-IoT ecosystem."
Realme will also produce a new variety of smartphones and will refresh most of its handset portfolio. "We are making sure that we have sufficient supplies of chipsets during Diwali."
Our principal focus was to ensure that chipsets are not a concern for supplies in the first half-year. We have maintained the growth trajectory."
Sheth stated that handset memory components are also witnessing shortages in the market. "But, chipsets are a major concern, and this could have a gap of 20% when we talk about demand vs supply."
Realme developed 140% year-on-year in the April-June quarter in India to capture the fourth position in the Indian smartphone market. As per Counterpoint Research, the company is pretty competitive with its 5G push and became the number one 5G handset brand with 22% in the quarter.
It also became the most active brand to reach 50 million aggregate smartphone shipments in India.
"We have seen triple-digit growth, and we are number two online. We were just a few thousand units away from our top competition. We are aiming to achieve up to 30 million in 2021. We want to be among the top three brands by the end of this year. We should move to the third position, but it depends upon the supply situation because there is a huge demand," Sheth said.
Sheth said Realme aspires further to agitate the 5G handset market with affordable smartphones, launching next year. It already proposes a 5G smartphone at Rs 13,999, the most affordable 5G device in the market.