xiaomi-india-production

In just a few years Xiaomi’s popularity has surged in its home country and just in the previous quarter it topped China’s smartphone market. The company does have its eye on international expansion but rather than hurrying into major markets across North America and Europe the company is first focusing on emerging markets. Part of its expansion plan is to localize production in target markets and Xiaomi has done that in India, smartphones sold by Xiaomi in that country will be manufactured there.

Xiaomi announced today that it has teamed up with Foxconn to produce smartphones in India, the first device that will be made in the country is the Redmi 2 Prime.

Production in the country has already begun and this has allowed Xiaomi to offer the Redmi 2 Prime at a very attractive price point, 6,999 INR or close to $110.

This isn’t the first country where Xiaomi has such an arrangement, when the company moved into Brazil it also set up local manufacturing primarily because import taxes on such devices are quite high in Brazil which would have affected Xiaomi’s ability to offer good handsets for a very competitive price.

Xiaomi is likely to see an improvement in its footing in that particular market, local manufacturing will allow it to further tweak the margins and ensure that customers get a solid handset for a very compelling price.

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