CLOSINGS: View Closings

China's Xiaomi tightens grip on India's smartphone market

Chinese tech giant Xiaomi already sells more smartphones in India than any other company. Now, it is tripling its man...

Posted: Apr 9, 2018 2:32 PM
Updated: Apr 9, 2018 2:33 PM

Chinese tech giant Xiaomi already sells more smartphones in India than any other company. Now, it is tripling its manufacturing base in the country.

Xiaomi is opening three new factories in India to make its hugely popular smartphones, the company announced Monday. It will also start manufacturing the devices at an existing plant that currently only makes power banks.

It already operates two smartphone factories in India.

The three new plants will be operated in partnership with Taiwanese electronics firm Foxconn. Xiaomi and Foxconn will also work together on a new plant in the southern Indian state of Tamil Nadu to make circuit boards for its devices.

Xiaomi has only been in India since 2014 but it broke Samsung's six-year dominance of the world's second-largest smartphone market in the quarter ended December.

It now accounts for more than 25% of the market, according to industry estimates, and its sales in India grew an incredible 259% in 2017.

Related: Xiaomi overtakes Samsung in world's hottest smartphone market

Xiaomi manufactures 95% of the phones it sells in India locally and its embrace of Prime Minister Narendra Modi's "Make in India" program have helped it avoid import tariffs that have restricted global rivals.

Apple started manufacturing some iPhone models at a plant in Bangalore last year, but it still imports the vast majority of its devices into the country.

"In 2015 we extended our long-term commitment to the Indian market by joining the 'Make in India' program. Today we are deepening this commitment," Xiaomi's India head Manu Jain said in a statement on Monday. "I believe we will continue to play a key role in transforming India into a global manufacturing hub," he added.

Related: An iPhone X now costs $1,700 in India

Jain announced the new factories at Xiaomi's first supplier summit in India on Monday, a three-day event aimed at convincing the company's component manufacturers to set up shop in India.

Xiaomi said that if all its suppliers set up shop in India, that could bring investments worth over $2.5 billion into the country and create as many as 50,000 jobs.

"They've called all their leading suppliers and are giving them a vision of investing in India," Tarun Pathak, an analyst with consultancy Counterpoint Research, told CNNMoney. "If they manage to bring their whole supply chain here, that's a win-win."

Article Comments

Saint Joseph
Overcast
29° wxIcon
Hi: 36° Lo: 26°
Feels Like: 18°
Maryville
Overcast
28° wxIcon
Hi: 39° Lo: 24°
Feels Like: 17°
Savannah
Overcast
29° wxIcon
Hi: 36° Lo: 25°
Feels Like: 18°
Cameron
Overcast
29° wxIcon
Hi: 31° Lo: 27°
Feels Like: 19°
Fairfax
Overcast
31° wxIcon
Hi: 40° Lo: 25°
Feels Like: 19°
A warm and windy Thursday across the area as temperatures reached into the low to mid 70s. A much cooler day on Friday across northwest Missouri and northeast Kansas and the winds again start to pick up out of the north which will cool our temperatures down to the 40's for highs.
KQTV Radar
KQTV Temperatures
KQTV Alerts

Community Events