The affirmation of Lei Jun about the profits of the company, ie that these will never exceed the 5%, is now famous, thus allowing the tech user to take advantage of the best technology at low cost. Xiaomi has confirmed this policy on several occasions, see for example the production costs of Mi Note 10 and therefore in an attempt to reduce production costs, continuing to offer the best quality / price ratio, will open its first production facility in Anfola , Central Africa.
It will be the partnership between Xiaomi and the Angolan company Fonecom that will make it possible to build an assembly line for different smartphones, to date 2020. Xiaomi is very appreciated as a brand in this country and has already opened some Mi Stores in these lands, so the new logistics strategy should allow the Chinese brand to conquer the country with smartphones belonging to the low and medium market range.
The pieces for the assembly of the smartphone will arrive with shipment from China and Xiaomi will arrange the assembly directly in the country. The logistics center will allow the assembly of more than 100000 units per year and the investment made by the two companies is around 1,5 million dollars.
Xiaomi will mount smartphones in Angola
To start with, the initiative involves the assembly of three smartphone models for the Angolan market. These three smartphone models will fit in all the ranges of the market, entry level, mid-range and top of the range, even if at the moment it has not been declared what the protagonist devices are. Horácio Moniz, representative of Fonecom, revealed that by the end of the first half of the 2020, five new stores will be operational to sell Xiaomi products in Angola, two in Luanda and the others in Lubango, Benguela and Cabinda.
In this way Xiaomi will be able to sell in the African country by improving prices. The two companies are already thinking about the future, which could replicate the success achieved by the brand in India. Other than the third world, the future starts from there.
