Xiaomi is stepping up industrial cooperation with Indian businesses. The Chinese manufacturer of smartphones, accessories and other electronics is trying to regain market share in the country, which it lost due to fierce competition and increasing pressure from Indian regulators.
Image Source: Xiaomi
It is known that Xiaomi has entered into an agreement with the Indian Optiemus Electronics Ltd. on the release of neckband headphones – according to Xiaomi, for the first time an Indian manufacturer will produce audio products commissioned by a Chinese tech giant. According to the company’s management, the event is significant, as it marks the entry into new product categories and demonstrates the readiness for the production of goods in India.
Xiaomi has dominated the Indian smartphone market for years, but money laundering allegations against it and increased pressure from the Indian authorities have seen the company’s shipments drop by more than 20% last year, with intensifying competition, component shortages and overstocking. Portfolio only exacerbated the situation. In the last quarter of 2022, the company took third place in the local smartphone market. From the first place of the Chinese tech giant was squeezed out by the South Korean competitor – Samsung, which strengthened its position by organizing the production of flexible smartphones of various types, as well as the classic flagships Galaxy S23 in the country. Now Xiaomi is banking on the growing demand for smart TVs, Bluetooth headphones and other accessories, hoping to once again increase revenue in India.
In the past, Xiaomi and other Chinese manufacturers didn’t care much about producing electronics like headphones locally, as they found it easier and more profitable to make them in China and export them to India. However, as Indian regulatory pressure on Chinese businesses escalated, manufacturers from the Middle Kingdom increasingly began to resort to industrial alliances with local companies, probably in order to win the favor of local authorities.
According to Bloomberg, helping local companies like Optiemus, Lava International Ltd. and Dixon Technologies India Ltd. entering the world market is one of the key tasks of Indian Prime Minister Narendra Modi (Narendra Modi), which should turn the country into an export hub. Optiemus believes that the partnership with Xiaomi will help it enter the global market. The company is also a strategic partner with Apple supplier Wistron.
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