Xiaomi’s expansion outside of Asia has finally begun

Xiaomi, the $45 billion valued Chinese firm ranked the world’s third-largest smartphone maker, has taken its first step outside of Asia after launching its business in Brazil. Today, Xiaomi revealed its first device for the Latin American country — that’ll be the Redmi 2, the latest version of its budget Android device, which will retail for 499 BRL, or around $160. The phone will be available online at Xiaomi’s Mi.com store from July 7, although pre-registration for that sale — Xiaomi makes all would-be customers sign up in advance to have a shot at buying devices, which are available in limited quantities — is open from today in Brazil. The company is again working with Foxconn to manufacture its devices on the ground in Brazil, thus avoiding the country’s high import taxes. Mobile phones and other gadgets typically retail for significantly more in Brazil than other places — the Wall Street Journal reports an iPhone is almost double the U.S. price — so it will be interesting to see if Xiaomi can maintain its low prices. And, if so, what kind of hit it takes offering them at low cost. Xiaomi VP of international Hugo Barra, who is Brazilian himself, previously told TechCrunch that the company negotiates longer (and cheaper) contracts for components, but manufacturing is comparatively more expensive in Brazil given the demand in response to those import taxes.