It was expected that Xiaomi would be very successful in India due to its extreme value-for-money devices like the Mi 3, Redmi 1S, and the Redmi Note. Well, it looks like the company under-estimated itself as it is facing demand-supply problems in India. To solve this problem, Xiaomi is approaching various solutions.
For starters, Xiaomi is in talks with one of the largest devices manufacturer, Foxconn. But this could increase the cost of production, depending on the quantity that Xiaomi wants them to produce. Secondly, Xiaomi is delaying their original plan of entering 10 countries to focus more on existing markets like India and Indonesia.
"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. We're shipping absurd quantities into India. We went from shipping 50,000 a week into India to 200,000."
-Hugo Barra, Vice President at Xiaomi Global
According to a report from Bloomberg, the company is also thinking to manufacture devices in local markets such as India and Brazil, where they would get cheap labour, and aplenty. The production of Xiaomi smartphones in India will start in a couple of years, but it will be earlier in case of Brazil.
Hugo Barra also stated in his interview with Quartz India that India is their biggest focus after their home country, China. He also hinted towards developing the device software in India and integrating a lot of India specific services inside the software.