Samsung opens world’s largest phone factory in India

Avatar By Le Williams | 2 years ago

Samsung Electronics, alongside Indian prime minister Narendra Modi and South Korean president Moon Jae-in, commenced the ribbon-cutting opening ceremony towards the world’s largest mobile phone manufacturing plant.

Situated in Noida, a satellite city of the Indian capital Delhi, the Samsung technology plant is reported to be capable of manufacturing up to 120 million smartphones annually.

According to Bloomberg, Samsung will utilize the plant to make entry-level phones that sell for less than $100, as well as flagship devices such as the Galaxy S9.

Modi’s “Make in India” initiative has increased tariffs on imported products in categories including communications devices; mobile phones from outside India will incur a customs fee of 20 percent. Companies such as Samsung and Xiaomi, which build their Indian-market phones in India, will be less affected. Apple, which competes exclusively at the high end of the market, has started to build phones in India — the SE has been assembled there for a while, and the company recently started local 6S production as well.

While touting a huge market of opportunity, India remains price-sensitive with extremely tight margins. There’s perhaps no stronger illustration of that than Samsung — the world’s biggest phone maker — deciding to open the world’s biggest phone factory there.

India is known as a huge smartphone market with over 400 million users, however, the country’s population of 1.3 billion reflects untapped potentials. 2017 smartphone shipments reached 124 million, according to figures from IDC, creating a substantial influence for the Samsung plant to account for a huge segment of the market.

Samsung has recently been overtaken by Xiaomi as the biggest smartphone vendor in India, however, expanding production within the country is going to be essential for anyone to compete.