India becomes house of the world’s largest smartphone factory by Samsung. The world’s largest smartphone factory is going to be opened by South Korean giant Samsung Electronic, in India. A great success to Prime minister Narendar Modi’s flagship program to urge investors to manufacture in the South Asian nation.
Samsung is hopeful to double its current capacity for smartphone production in Noida from 68 million units annually to 120 million units in 2020.
The facility will help Samsung build more cheap phones to make gains in India, a market dominated by the likes of Xiaomi & Lenovo’s Motorola unit.
South Korean President Moon Jae-in and Indian Prime Minister Narendra Modi attended the opening ceremony of the facility.
India has become Asia’s third-largest economy that attracted the record foreign direct investment in the past year with inflows totaling US$62-billion.
Xiaomi and Oppo are also contributing to make India the world’s fastest-growing market by building factories there. Xiaomi announced in April that it will set up three more factories in India.
Earlier this year, Xiaomi could displace Samsung from the number one smartphone spot in India and broke Samsung’s long-held dominance.
Now, Samsung could cater to the huge demand in a country of 1.3 billion masses with only 425 million smartphone users.
In 2017, India’s smartphone market grew 14 per cent with total shipments of 124 million units, the fastest pace of growth among the world top 20 markets, according to IDC.
Alongside some other factors, billionaire Mukesh Ambani has helped India increase demand for smartphones by offering $23 4G feature phones, free voice services and cheap data plans.
The new under plans Samsung factory will produce 120 million smartphones per year. The factory will make everything from low-end smartphones that cost under $100 to its flagship S9 model.
Bloomberg Intelligence has reported that Indians like low-end smartphones priced at $250 or less, given the low average annual income of Indians.
This likeness for low-end phones is one reason for Apple that has struggled to gain market share in India, with most iPhone models that are priced beyond $500, according to a Bloomberg Intelligence.
Last year, India overtook the United States to become the world’s 2nd largest smartphone market after China. There will be 780 million connected smartphones in the year 2021, compared to 359 mn in 2016, as per a study by Cisco.