Xiaomi partners with Air Link to manufacture smartphones in Pakistan

In another boost to Pakistan's mobile phone manufacturing capability, Chinese giant Xiaomi has partnered with assembler and distributor Air Link Communication Limited to manufacture Xiaomi mobile phones in Pakistan.

“Xiaomi, the global consumer electronics and smartphone giant, has joined hands with Select Technologies (Pvt) Limited (SELECT), a wholly-owned subsidiary of Air Link AIRLINK as its manufacturing partner for Xiaomi mobile phones in Pakistan,” read a notification sent to the Pakistan Stock Exchange (PSX) on Monday.

Last month, Air Link announced that it will incorporate a wholly-owned subsidiary 'Select Technologies (Pvt) Limited'. "The primary objective of this wholly-owned subsidiary would be to take on additional mobile device manufacturing of certain selected brand(s),” Air Link had stated.

Air Link announces wholly-owned subsidiary for mobile device manufacturing

Xiaomi's share of the global smartphone market grew 83% year-on-year in the quarter, ended in June, according to research firm Canalys. It shipped 52.8 million phones, making it the world's second top-selling brand for the first time in history, behind Samsung and ahead of Apple.

Meanwhile, Air Link said that it is “targeting a production of initially around 2.5 million to 3 million handsets annually subject to the smooth supply chain which is expected to add approximately $450 million annually in top-line revenue numbers and will have a material incremental impact on the EPS of the company other than the normal course of business,” the notification said.

Air Link said that the production facility will be located adjacent to its existing mobile manufacturing facility at Quaid-e-Azam Industrial Estate, Kot Lakhpat Lahore. The production facility is anticipated to be operational within the month of January 2022.

Xiaomi plans to set up smartphone assembly unit in Pakistan

The statement further clarified that SELECT will be the manufacturing partner whereas AIRLINK will continue to be the distributor of Xiaomi phones in Pakistan.

“Courtesy the manufacturing of Xiaomi phones by SELECT, AIRLINK expects to substantially increase its distribution and retail business of Xiaomi phones in Pakistan,” it added.

Boasting a young and tech-savvy population, and a low-cost labour advantage, a number of international technology companies have entered or are in the process of entering the Pakistan's market.

The government had also introduced a mobile manufacturing policy to encourage and attract manufacturers to establish their units in Pakistan.

Till now, 26 companies have been issued MDM Authorisation enabling them to manufacture mobile devices in Pakistan, said the Pakistan Telecommunication Authority.

The companies include Samsung, Nokia, Oppo, TECNO, Infinix, Vgotel, Q-mobile among others.