Chinese smartphone maker Xiaomi arrives in Brazil

Chinese smartphone manufacturer Xiaomi has finally arrived in Latin America.

The company, currently the world's fifth largest smartphone brand in terms of units shipped, this Tuesday launched June 30) operations in Brazil, its first outside Asia, at an event in São Paulo.

Xiaomi will initially be selling its mid-tier Redmi2 smartphone in the country, in addition to the Mi Band smartband, the Mi Powerbank recharger and accessories.

Likewise, in other countries all sales will be made through the company's website, with marketing largely relying on social media and word-of-mouth.

The company's VP of international operations, Brazilian-born Hugo Barra, does not rule out deals in the short-run for sales via retailers and operators – Brazilians' two preferred channels for smartphone purchases.

As for other markets, the company has no plans for further launches in Latin America in the short term, although it does admit that it is interested.

"We're fully committed to Brazilian operations at the moment and we want to see how things evolve here," Xiaomi's Latin America director, Leo Marroig, told BNamericas during a press conference.

LOCAL PRODUCTION

Brazil is also the first country outside China to have local production of Xiaomi's devices.

Manufacturing is being carried out by Taiwan's Foxconn through its factory in the city of Jundiaí in São Paulo state. The first devices are already rolling off the production line, Barra said.

To handle demand, another batch of Redmi 2 phones was also imported into the country. Barra did not disclose figures on initial availability, KPIs or goals for market share.

With local production, the company is benefitting from tax breaks under Brazil's Lei do Bem law. Xiaomi is also embedding Brazilian-developed apps, a requirement of the same law.

FEATURES

The Redmi 2 phone has a 4.7-inch screen – the same size as the iPhone 6, but with a "usable" screen area that is reportedly 3% larger, and it runs Xiaomi's homegrown Miui6 operating system, which is built over Google's Android OS.

It is a dual-SIM Card phone, which means it supports SIM cards from two different operators, powered by a Qualcomm Snapdragon processor.

In Brazil, the smartphone will operate in the 2.5GHz 4G LTE bands, in addition to 3G and 2G networks. The phone is also be compatible with the 700MHz bands, and Qualcomm will provide chipsets able to operate on them once the spectrum becomes available in the country, Marroig said.

Sales begin on July 7, but interested buyers must register online first.

Founded in 2010, Xiaomi shipped 64mn units last year, making it the world's fifth biggest smartphone company. In China, the company became the number one manufacturer after displacing Apple and Samsung in 2014. According to analysts, it has a market value of US$45bn.

In addition to smartphones and wearables, Xiaomi also produces tablets, smartTVs and routers, among other products.

Currently, Xiaomi sells hardware in China, Taiwan, Hong Kong, Malaysia, Singapore, Philippines, Indonesia and India.