Xiaomi and Foxconn collaborate to develop new smartphones in India.
Foxconn, a Tawainese company, has agreed with the China based company to start manufacturing Xiaomi's smartphones, in order to market the cellphones to one of the world's largest phone consumers and decrease costs in production.
Xiaomi has just recently ranked the 7th in phone distributions in India, a field were Samsung dominates the competition, with local Micromax not far behind, prompting the tech company to partner up with Foxconn, which has a manufacturing hub in Sri City.
The on-demand electronics manufacturer has already been helping the smartphone giant for their newest local release in India, the Redmi 2 Prime, which was just released this week, priced at 7000 rupees. It was then confirmed that Foxconn has been making Xiaomi phones since June, according to Rapid News Network.
The Indian division's head, Manu Jian, has stated that extending Xiaomi's reach to India will bring in more benefits like enhanced management of inventory, tax reforms advantageous for manufacturing and could possibly cut lead times up to almost a week.
Foxconn's fabrication line in India might be revived with this upbringing, after the flop made by their partnership with Nokia, which halted their production in 2014.
India has rose as one of the leading consumers in electronics, with over 140 million units being sold in only the past year, and has favored Xiaomi for their cheap but durable phones, as people these days are getting more budget-oriented.
The moving of manufacturers to India is getting large support from the Prime Minister, Narendra Modi, with him spearheading a movement to create India into a hub for construction and manufacturing in order to bolster the economy and create possible work opportunities, reports Reuters.
Xiaomi has also set sights on other ventures in Brazil and other countries as the company continues to grow.