After huge storm created in Indian market with flash sales Xiaomi sold more than 95,000 units of MI3.
The demand is still active and this is still a favorite phone in black market. Most of them who have tried to book failed almost every time as sale would be last for just 2-3 seconds.
Hugo Barra is just expressing red signal for sale of MI3. The main reason is due to more demand it is easy to produce Redmi 1S rather than MI3 to fulfill the needs of buyers and not to disappoint them and they are keen to focus on Redmi 1S and acquire mid range market and top the chart. They are about to take a final call on this.
Xiaomi has planned to release Redmi Note in some time and MI 4 at end of this year.