Aug 10, 2015 05:13 PM EDT

Xiaomi Announces Global Expansion Plans With New Target Market; Chinese Company Shears Costs, To Manufacture Redmi & Other Smartphones In India?

By Alex Cruz

Xiaomi Corp. announced on Monday that it started manufacturing handset units in India, which includes the famous Redmi 2 Prime. This was an advantageous move for the company to market its product in the new target market, as part of its global expansion plan, and at the same time cuts production cost.

Xiaomi became the world's third largest device seller because of its sales in the China Market. It wanted to branch out to other countries, hence, the expansion in manufacturing and sales in Brazil, The Wall Street Journal reported.

Hugo Barra, Xiaomi's Vice President for Global Operations, said that creating phones in India would benefit the company from tax breaks. They would also be able to deliver products efficiently and as a result — more savings on the inventory costs.

In addition, smartphone sales in India have doubled to around 150 million over the past two years.

During the launch of the first India's Xiaomi-manufactured phone in Viaskhapatnam, an official said that the estimated sales will grow from 1.5 billion in 2015 to 1.7 billion in 2017. This will make India as the second largest smartphone market by 2017, following China, The Indian Express learned.

Xiaomi already launched the $200 Mi 4i in New Delhi a couple of weeks back. Now, the company is manufacturing Redmi 2 Prime for a little more than $100.

Currently, the China-based company is manufacturing Redmi Note 2, and rumor has it that it is equipped with the same high-end chip as HTC's. The phone allegedly a 2GB RAM, 16 GB internal storage, 13 MP rear and 2MP front camera, according to International Business Times.

It was also rumored that Redmi Note 2 will run on an eight-core Snapdragon 615 processor. Will India-based Xiaomi also manufacture the note 2 just like the Redmi 2 Prime?

There is a fat chance that the company would, but there are no confirmations as of late.

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