Xioami has announced that is postponing its international expansion plans. Earlier this year, the company had planned to enter into 10 foreign markets but it will now expand to only five.
The Chinese smartphone maker will enter Brazil, Russia, Thailand, Mexico and Turkey markets in next year. Meanwhile, it will focus on existing markets like India and Indonesia.In the third quarter Xiaomi became the world’s third-largest smartphone vendor, mainly on huge sales in its home market of China.
“We realized that it’s a smarter thing to do to scale back a bit and put a ton of effort in India and Indonesia before expanding further,”
said Xiaomi vice president Hugo Barra in a statement.
At the moment, Xiaomi makes use of facilities at OEM-specialists like Foxconn. However, with demand exceeding supply manifold, Xiaomi feels the need for greater production capabilities. Bloomberg also adds that Xiaomi is in talks with Foxconn about production in India and Brazil. The company has also decided to assemble phone in big markets like India and Brazil, which will be generating most demand for its products in the coming years after China. Earlier this month Xiaomi received $163M in sales on Single’s Day in China and the company is also touted to be seeking $1.5 billion in funding.