Xiaomi partners with Air Link to manufacture its phones in Pakistan

China’s Xiaomi joined hands with Air Link Communication Ltd. to manufacture Xiaomi mobile phones in Pakistan.

A regulatory filing on the Pakistan Stock Exchange on Monday disclosed that Xiaomi has partnered with Air Link’s unit Select Technologies (Pvt) Limited as its manufacturing partner for the production of Xiaomi mobile phones in Pakistan.

Select Technologies would be the manufacturing partner of Xiaomi whereas parent Air Link Communication would continue to be the distributor of Xiaomi phones in the country. Air Link said the production unit will be adjacent to the existing mobile manufacturing unit of the company at Quaid-i-Azam Industrial Estate, Kot Lakhpat in Lahore. The production facility is expected to start operations in January 2022.

The companies are initially targeting to produce around 2.5 million to 3 million handsets every year, subject to an uninterrupted supply chain. The partnership is expected to add around $450 million annually to the top line and “will have a material incremental impact on the earnings per share of the company other than the normal course of business,” it said.

Xiaomi is a global consumer electronics and smartphone manufacturing giant whereas Air Link Communication Limited is an assembler and distributor.

Xiaomi became the world’s second-largest mobile phone brand after shipping 52.8 million phones. Samsung leads the race, while Apple is just behind Xiaomi. The Chinese tech giant’s share of the global mobile phone market grew 83% year over year in the quarter ended June 30, 2021.

Air Link last month announced the incorporation of ‘Select Technologies (Pvt) Limited’ last month. “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.

“Courtesy the manufacturing of Xiaomi phones by SELECT, AIRLINK expects to substantially increase its distribution and retail business of Xiaomi phones in Pakistan,” Air Link said in a regulatory filing. “Further details will be shared in due course,” it added.