Xiaomi plans to start producing smartphones in India and Brazil to meet huge demand

Xiaomi plans to start producing smartphones in India and Brazil to meet huge demand
Last week, Xiaomi CEO Lei Jun declared that his company could become the world’s largest smartphone maker in 5 - 10 years, dethroning Samsung and Apple from the top. Of course, in order to get there, Xiaomi needs to establish itself as a top handset maker in key markets. The company is already hugely successful in China (its home country), and it’s also doing great in India. However, Xiaomi has problems meeting demand in foreign markets.

According to Bloomberg, Xiaomi’s Hugo Barra recently said that the company was shipping 200,000 handsets per week to India. That’s not always an easy task, and the company had to charter special flights with several occasions to meet delivery schedules. With that in mind, Xiaomi is currently in talks with Foxconn (which builds some of its smartphones) to start producing hardware in India in 1 or 2 years. Xiaomi also plans to begin producing handsets in Brazil, likely earlier than in India.

Because it can’t keep up with demand, Xiaomi decided to wait - possibly until next year - before it officially enters new markets like Thailand, Russia, Turkey and Mexico. Meanwhile, the company will focus on selling its smartphones in India, Indonesia, and other Asian markets (in addition to China, of course).

What do you think, should Apple and Samsung fear Xiaomi?

source: Bloomberg

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19 Comments

1. deewinc

Posts: 455; Member since: Feb 21, 2013

Are Foxconn allowed to make extra devices apart from the ordered ones in order to sell or give them off exclusively to their employees? I would have all phones coming out of the conveyor belt at Foxconn.

2. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Good! Maybe buy over the old lumia factory?

8. rihel_95

Posts: 305; Member since: Mar 21, 2012

yes, its rumored that xiaomi is in talk with Microsoft about the left out factory in South India! (this news was all over in The Times of India)

9. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Create employment. Very important. Xiaomi may even be persuaded to produce next gen windows phones.

10. hunted

Posts: 403; Member since: Sep 21, 2011

Lava/Xolo was also in talk about buying the Nokia chennai plant.

3. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Foxconn dominated smartphones industry just like Qualcomm, whoever oem against foxconn can ready to declare bankruptcy, did you hear that Samsung ?

7. iushnt

Posts: 3126; Member since: Feb 06, 2013

haha how can u compare a consumer company with some chinese assembly lines?

4. sadiqahmed

Posts: 71; Member since: Oct 11, 2013

Yes, most definitely Apple and Samsung should fear Xiaomi.

11. EC112987

Posts: 1216; Member since: Nov 10, 2014

Well worldwide I agree they're growing but in America it would be hard at first for them to pose any type of threat. With that said I'm excited for the future

5. laughmi

Posts: 283; Member since: Oct 28, 2014

Xiaomi should buy Chennai Nokia Factory and just improve after-sales support here. They would be hero and could give good competition to Samsung. Xiaomi would trump Apple to become 2nd largest smartphone makers in 2015.. Bad news for fanboys..

6. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Cool...

12. dimas

Posts: 3383; Member since: Jul 22, 2014

No need to conquer america if you can be a hit on other parts of the world? Americans are too obsessed with iPhones and if I am Xiaomi I won't waste energy destroying that fanaticism because I can make clean profit from India and China. Sammy was too ambitious and look at their sales.

13. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

Good, now you need to wake up.

15. JMartin22

Posts: 2372; Member since: Apr 30, 2013

How are you are they going to be as profitable as Samsung and Apple just selling mostly low-end handsets in third world countries that are very poor? They can't enter established markets like North America or Europe because they'll be litigated into grave by the two aforementioned. Xioami will always be a quantity vendor, not a quality or profiteering OEM.

14. Oğuzhan_77

Posts: 112; Member since: Nov 18, 2013

Yesss i live in turkey. İ will buy a mi4

18. Guaire

Posts: 890; Member since: Oct 15, 2014

How ?

16. mloudt

Posts: 21; Member since: Nov 14, 2014

We can see Samsung is already feeling heat from its investors. I looked it up awhile back because we always here about these emerging markets. So I googled top 10 populated countries. China 1.4 billion India 1.1 billion USA 320 million not including illegals emerging markets would be 4 and 5 most populated Indonesia 170 million and Brazil around 150 million / rough estimates for 4 and 5. So, yea Apple and Samsung should be worried because technically Xiaomi could be number one by January 2018 or sooner by just concentrating on top 5 most populated countries not including USA.

19. sergiobr

Posts: 718; Member since: Feb 25, 2013

Not really in Brasil ! I live here , and the people wants iPhone and Samsung products to be on pair with other countries. Samsung here is the king. MS tried hard with popular phones.Chinese phones here are seem as the worst technology, so I doubt that Xiaomi will gain the people who is able to spend money in a smartphone.

17. tjnapster555

Posts: 9; Member since: Jun 10, 2013

Xiaomi dont like Paksitan at all :(

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