Hugo Barra, the vice president of Xiaomi and formerly the vice president of product management for Android, told technology website CNET in an interview that the company is set to enter India with aggressive pricing. In fact, Barra says that Xiaomi plans to sell phones almost close to cost.
However, despite the relatively low pricing, Xiaomi's phones in India will focus on performance and quality.
The company will only launch Android smartphones and has no plans to launch Ubuntu or Firefox OS smartphones, not just in India, but also in global markets. Barra says, "We think we've made Android an even better operating system."
Xiaomi is working on forming relationships with telecom operators and partners in India and is also setting up an e-commerce portal, where it will sell its smartphones to consumers directly. The success of Moto G has already shown that the online-only model can work in India.
The company is also readying a new office in the country.
Xiaomi has a unique business model - it makes a limited number of smartphones that are sold only on the internet. However, it has tasted success with this method. It sold 10,000 units of its Red Rice smartphone in 36 seconds in November 2013. It has also sold 2,00,000 smartphones in three minutes on last year's Singles Day, which is celebrated as China's answer to Valentine's Day.
Google India's head, Rajan Anandan tweeted about his meeting with Xiaomi executives and said that the India, which is the second-fastest growing smartphone market in the world after China, is set to change.
Xiaomi enters the Indian market soon after other Chinese manufacturers, such as Gionee and Oppo. Indian companies like Micromax and Karbonn also import smartphones from China.
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