Xiaomi Corp's decision to make Brazil the first market outside of Asia for its smartphones represents an opportunity to establish a foothold in Latin America. It may also serve as a stepping stone to enter the United States, according to analysts.

Last week, Xiaomi, the world's third-largest smartphone maker, announced it would begin selling the Redmi 2 in Brazil on Tuesday for about 499 reals ($160). The Redmi 2 is the latest version of its Android budget phone.

"Brazil is obviously a different market from China and it can serve as a model for other Latin American countries," William Stofega, program director for mobile phones for International Data Corp, said. "The pricing is ideal for Xiaomi. If you go higher, then the number of people who can afford the phone declines."