Monday in CE: New Xiaomi Plants Stage India to be Next Smartphone Proving Ground
The narrative over the past few weeks has made it clear that smartphone companies are very interested in courting India. Our first not so subtle hint was Google's big plans to snatch the growing market before anyone else gets a chance. Their plan not only includes an entry-level version of their Pixel 3 but a full-blown scaling of their suite of connected home products as well.
Today we have learned that the popular Beijing-based manufacturer Xiaomi will set up three new manufacturing units in India to support their efforts. It should be noted that Xiaomi did most of their assembling in India already, the new manufacturing plants will bolster smartphone components including Printed Circuit Board Assemblies. Alongside an announcement in New Delhi, Xiaomi could potentially bring earn an additional $2.5 billion in investments if their component suppliers get on board.
Looking at the big picture, Xiaomi would raise their contribution to smartphone assembly from 10 percent to 50 percent, with a goal of "100 percent localization by Q3 of 2018." These new plants also helped Xiaomi upend Samsung's six-year run as the world's second-largest smartphone market in Q4 2017, accounting for more than 25% of the market, a 259% growth in 2017.