Xiaomi targets Samsung and Apple's market with $1,000 device.

• At the Mobile World Congress, the Xiaomi 13 and Xiaomi 13 Pro were globally launched by Xiaomi.

• The Xiaomi 13 is priced at 999 euros ($1,053) to start, while the 13 Pro begins at 1,299 euros.

• Xiaomi is striving to enter the high-end market, which offers higher profit margins and growth opportunities, pitting them against competitors Apple and Samsung.

         In an effort to expand its reach in the high-end market and compete with industry leaders Apple and Samsung, Chinese electronics giant Xiaomi has launched its flagship smartphones, the Xiaomi 13 and 13 Pro, globally. Originally launched in China in December, the devices are now being brought to markets overseas.

The Xiaomi 13 Pro boasts a 6.73-inch display and the latest Snapdragon 8 Gen 2 chipset from US firm Qualcomm. It has a triple-lens camera and other premium features like ultra-fast charging. Xiaomi co-engineered the camera with German firm Leica, and the company has highlighted its capabilities.

The Xiaomi 13 starts at 999 euros ($1,053), while the 13 Pro starts at 1,299 euros. However, the company's smartphone shipments declined 26% year-on-year in 2022, according to research firm IDC, marking the biggest fall among the top five biggest handset vendors. The company also swung to a loss in the September quarter, its latest available financial results.

Xiaomi has been facing headwinds from a slowing economy in China and increasing competition, particularly from Apple's popular iPhone models and Honor, the Chinese smartphone brand spun off from Huawei. While Xiaomi has previously built its success on bringing high-spec devices to market at competitive prices, it is now looking to expand into the higher end of the market, where margins are higher and the market is still growing.

According to research data, high-end smartphones costing over $800 accounted for 18% of the total handset market in 2022, up from 11% in 2020. Xiaomi's push into this premium tier puts it in direct competition with Apple and Samsung, who together accounted for 92% of the high-end market in 2022.

Xiaomi is not the only company attempting to break into the high-end market. Oppo recently launched its first foldable phone for the overseas market, which costs over $1,000. However, competing with Apple and Samsung is a significant challenge, as both companies have exceptional brand awareness, high-end perceptions, experience-focused solutions, and product ecosystems with high user-stickiness.