Foxconn to help its Chinese clients expand smartphone sales in emerging markets

According to industry sources, Foxconn wants to help its Chinese handset clients expand their sales in emerging markets. The contract assembler counts as clients such expanding manufacturers as Xiaomi and Meizu. The former saw its smartphone shipments more than triple in 2014. Last year, it expanded to a number of emerging markets like Brazil, India, Indonesia, Russia and Turkey. But so far, results have been disappointing.

In India, the company sold 1 million phones in 2014, starting back in July. But Xiaomi has been banned from selling any handsets in the country until February. Ericsson has taken Xiaomi to court in India, claiming that the company is infringing on eight of its patents related to 3G, EDGE and AMR (adaptive multi-rate) technologies. The Delhi High Court will issue a final ruling next month.

Regardless of the outcome of the case, Foxconn could end up partnering with Xiaomi to build smartphone factories in India and Brazil. The Indian plant could be operational as soon as this year.

Back in August, Xiaomi pulled the high-end Xiaomi Mi 3 in India despite selling 95,000 units including a block of 15,000 that sold in two seconds. Xiaomi replaced the model with its entry-level Xiaomi Redmi 1S and its Xiaomi Redmi Note phablet. The reason for the switch had to do with ease of production. For Xiaomi, producing the Redmi 1S was easier than manufacturing the Mi 3. A new factory built by Foxconn could help Xiaomi produce its high end models, including the new Xiaomi Mi Note and Xiaomi Mi Note Pro, more efficiently.

source: DigiTimes