Xiaomi takes first big step outside Asia with Brazil smartphone

Sao Paulo

CHINESE smartphone maker Xiaomi has started making devices in Brazil for sale locally, promising to dramatically undercut rivals on price in the first big step beyond Asia for the world's most valuable technology startup.

Xiaomi's global vice-president, Hugo Barra, said in an interview on Tuesday that Brazil was "stage one of our Latin America launch", pointing to Mexico and Colombia as logical next steps in the region, although he declined to say when.

Without traditional advertising or stores, China's top-selling smartphone company is betting that a tempting price tag will capture the attention of Brazilians who have become increasingly cos…