A material disclosure statement presented at the Pakistan Stock Exchange has indicated that Chinese tech powerhouse Xiaomi will begin production of smartphones in Pakistan from January 2022. Xiaomi is targeting the manufacture of up to 3 million smartphones annually in its Pakistan production facility. Expected revenue from Xiaomi’s Pakistan operations is in the region of $450 million.
The key details were filed this week to the Pakistan Stock Exchange by Xiaomi’s local partner, Air Link Communication Limited. The production arrangement is between Xiaomi and Select Technologies (Pvt) Limited, a subsidiary of Air Link Communication Limited. Select Technologies will serve as the manufacturing partner for Xiaomi in Pakistan, with a focus on the production of mobile phones. Select Technologies will be tasked with the manufacture of mobile devices of certain brands. It is possible that Xiaomi may not ultimately be the only brand that will be manufactured by Select Technologies.
The parent company, Air Link Communication Limited, says that the new investment that aims at an annual production target of between 2.5 million to 3 million units will have a material incremental impact on the financial outlook of the company. Revenue projection for the new manufacturing of Xiaomi smartphones is projected at $450 million annually. The production facility is sited close to Air Link’s mobile phone manufacturing complex in Lahore. Air Link will continue to hold a large chunk of the distribution chain of Xiaomi smartphones in Pakistan, and its new production facility will further entrench its position in the market.
Xiaomi continues to expand its operations outside of China as it feels the void left behind by Huawei. Xiaomi has had some impressive numbers globally as a leader in the smartphone segment. Data from several sources point to the fact that Xiaomi is currently the world’s top-selling smartphone brand, outclassing both Apple and Samsung. The expansion of Xiaomi’s Pakistan operations will add to the growing profile of the Chinese company.
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