Xiaomi, a Chinese technological giant, has partnered with Air Link Communication Limited to manufacture Xiaomo-branded handsets in Pakistan.
Xiaomi has teamed with Select Technologies (Pvt) Limited (SELECT), a subsidiary of Air Link AIRLINK, to manufacture smartphones in Pakistan, according to a notification filed to the Pakistan Stock Exchange today.
Last month, Air Link announced the formation of Select Technologies (Pvt) Limited with the goal of expanding its mobile device manufacturing capabilities.
According to Canalys, Xiaomi’s share of the worldwide smartphone market increased by 83 percent year on year in the quarter ending in June. For the first time in history, the business shipped 52.8 million phones, giving it the world’s second most popular brand, trailing only Samsung but far ahead of Apple.
In Pakistan, mobile device manufacturing (MDM) authorization has been granted to over 25 companies so far; Samsung, Nokia, Oppo, TECNO, Infinix, Vgotel, and Q-mobile are among the most popular.
Air Link also claimed that it plans to produce 2.5 million to 3 million phones per year initially, assuming a seamless supply chain, which is estimated to add $450 million in annual top-line revenue and have a meaningful incremental impact on the company’s EPS outside of the normal course of business.
The production facility would be close to Air Link’s existing mobile manufacturing facility at Quaid-e-Azam Industrial Estate, Kot Lakhpat Lahore, according to the announcement. The manufacturing facility is expected to be operational in January 2022.
The statement went on to say that Select will be the manufacturing partner, while Airlink will remain the distributor of Xiaomi phones in Pakistan. Moreover, the statement said, “Courtesy the manufacturing of Xiaomi phones by SELECT, AIRLINK expects to substantially increase its distribution and retail business of Xiaomi phones in Pakistan.”
Several multinational technology businesses have entered or are in the process of entering the Pakistani market, which benefits from a young and tech-savvy populace as well as a low-cost labor advantage.
A mobile manufacturing strategy was also created by the government to encourage and attract firms to set up shop in Pakistan.
