Chinese smartphones and electronics giant Xiaomi plans to manufacture phones in Pakistan, its local partner, Air Link Communication Limited, revealed in a material disclosure statement filed in the Pakistan Stock Exchange on Monday.
"Xiaomi, the global consumer electronics & smartphone giant, has joined hands with Select Technologies (Pvt) Limited, a wholly-owned subsidiary of Air Link Communication Limited, as its manufacturing partner for Xiaomi mobile phones in Pakistan," reads the statement.
Last month, Air Link had announced that it will incorporate a wholly-owned subsidiary "Select Technologies (Pvt) Limited".
"The primary objective of this wholly-owned subsidiary would be to take on additional mobile device manufacturing of certain selected brand(s),” Air Link had stated.
Air Link said that it is initially targeting the production of an estimated 2.5-3 million handsets annually, which "will have a material incremental impact on the earnings per share of the company other than the normal course of business."
The manufacturing of these smartphones will approximately contribute $450 million annually to revenue, the company projects.
"The production facility will be located adjacent to Air Link's existing state-of-the-art mobile manufacturing facility at the Quaid-e-Azam Industrial Estate, Kot Lakhpat Lahore," read the statement.
The production facility is expected to be operational within January 2022.
Select will be the manufacturing partner whereas Air Link will continue to be one of the largest distributors of Xiaomi phones in Pakistan.
"Courtesy the manufacturing of Xiaomi phones by Select, Air Link expects to substantially increase its distribution and retail business of Xiaomi phones in Pakistan," it said.
Xiaomi's share of the global smartphone market grew by 83% year-on-year in the quarter ending June, as per Canalys, a research firm.
In a report published in Business Recorder, Xiaomi shipped 52.8mn phones during this period, making it the world's top-selling brand behind Samsung and Apple.
Air Link has established several retail stores in Pakistan and is the only distributor of international smartphone brands that is now also fully vertically integrated, a statement from the company had said earlier.
"It is one of the largest distributors in Pakistan for Samsung, Apple, Huawei, Xiaomi, Itel, Techno, TCL and Alcatel," the statement said.
Source: https://www.geo.tv/latest/379634-chinese-giant-xiaomi-to-manufacture-phones-in-pakistan