Xiaomi has planned assembly plant in Pakistan within the next three to four months. This strategic move not only signifies a significant milestone for the tech giant but also carries promising prospects for the Pakistani market.
The introduction of this assembly plant holds the potential to boost employment opportunities within Pakistan and make smartphones more accessible to its population, aligning with the government’s vision for economic growth and digital inclusion.
The breaking news about Xiaomi’s expansion in Pakistan was reported by the state news agency, bringing a wave of enthusiasm among tech enthusiasts and potential job seekers in the country.
Xiaomi’s remarkable growth and dominance in the global smartphone market have garnered attention in recent years. According to global analytics firm Canalys, Xiaomi secured its position as the world’s second-largest smartphone vendor behind Samsung, surpassing Apple in the second quarter of 2021. During this period, Xiaomi’s smartphone shipments surged by an impressive 83 percent year-on-year, elevating the brand to a substantial 17 percent global market share, based on Canalys data.
If Xiaomi continues its current growth trajectory, it could soon outpace Samsung, just as it did with Apple, making it the world’s largest smartphone vendor before the year concludes.
In Pakistan, the smartphone market is a vibrant arena with several prominent players vying for consumer attention. The top smartphone vendors in Pakistan for the first quarter of 2021, as reported by Canalys, were Transsion (at #1), Vivo (at #2), Samsung (at #3), Oppo (at #4), and Xiaomi (at #5).
It is worth noting that Pakistan has already witnessed the establishment of assembly plants by various smartphone manufacturers. Brands such as Tecno, Infinix, Gfive, and Realme have initiated local assembly operations, contributing to the country’s economic growth and job creation.
Realme, another Chinese smartphone manufacturer, recently announced the establishment of its smartphone manufacturing plant in Lahore, resulting in a significant reduction in the prices of its smartphone models. If Xiaomi successfully establishes its assembly plant in Pakistan, a similar effect can be anticipated for Xiaomi’s smartphone prices.
Local assembly of smartphones in Pakistan offers several benefits, including the potential for more affordable products and a positive socio-economic impact. Both Xiaomi and Realme aim to manufacture smartphones and other Artificial Intelligence of Things (AIoT) products in their local assembly plants, catering to the needs of a developing country with a large, young population.
Pakistan, home to over 40 million mobile phone users, ranks as the seventh-largest global importer of mobile phones. Local manufacturing will lead to substantial savings on foreign exchange spent on mobile phone imports. It is essential to highlight that local production reduces import duties, which have increased by up to 240 percent following the Annual Budget 2021-26.
Xiaomi’s decision to invest in a local assembly plant demonstrates its commitment to the Pakistani market and its recognition of the country’s potential as a vital player in the global smartphone industry. As the assembly plant becomes operational, it will contribute to enhancing the availability and affordability of smartphones for Pakistani consumers while simultaneously fostering economic growth and employment opportunities.
