Xiaomi is planning to begin assembling smartphones in India and Brazil, reports Bloomberg. The publication notes that Xiaomi’s smartphone production in these countries could start as early as next year.
“Production in India will likely begin in one to two years, and Brazil may start sooner,” Xiaomi Global VP Hugo Barra told Bloomberg in an interview.
The company currently uses manufacturers like Foxconn and Inventec to produce its smartphones, but with the increased demand due to expansion in more markets, the company is finding it hard to keep the supply sufficient. Xiaomi’s troubles aren’t just limited to smartphone production but also with the distribution.
The company’s India head Manu Jain recently said at a press event that the company had to rope in chartered flights multiple times to ship smartphones to the country as they couldn’t find the space on regular cargo planes. So, the smartphone maker has decided to assemble phone in big markets like India and Brazil, which will be generating most demand for its products in the coming years after China.
According to Bloomberg, it is already in talks with Foxconn with production in the two countries.
Global expansion plans
In the wake of supply issues, Xiaomi has reportedly decided to delay the launch in five of the markets, where it was scheduled to start operations this year. The company had earlier announced that it will enter ten markets in 2014, but now Bloomberg writes that the consumers in Brazil, Russia, Thailand, Mexico and Turkey will have wait longer for Xiaomi’s debut in their country.
Xiaomi has some big plans for the coming years but most will depend on whether it is able to build and ship enough products.
By making phones in India, they can sure save on import duties and logistics cost. But will this reflect on the final selling price of their phones? Only time can answer!
P M’s make in India!