Tuesday, July 10, 2018

Samsung opens world's largest mobile phone factory in India


Samsung, along with Indian Prime Minister Narendra Moody and South Korean President Moon Jay-en, cut the opening tape of the world's largest mobile phone manufacturer. Located in Noida, a city of the Indian capital of Delhi, it is said to be able to produce up to 120 million smartphones a year. According to Bloomberg, Samsung says it will use the factory to create phones at special prices that are compatible with the country's average per capita income, where it will be sold for less than $ 100, as well as major devices such as the Galaxy S9.

India is a huge market for smart phones with more than 400 million users, with shipments of smartphone 2017 124 million, according to IDC figures, so Samsung factory alone can represent a large share of the market. Samsung recently overtook Xiaomei as India's largest smart phone vendor, and it is clear that expanding production within the country will be essential so that they can compete.


The "Make in India" initiative increased the tariff rate on imported products in categories including telecommunications equipment. Mobile phones from outside India will charge a 20% tariff. Companies such as Samsung and XIAOMI, which are building their phones in India, will be less affected. While Apple, which competes exclusively in the high-end market, began to manufacture phones in India.


India is a huge market of opportunities, but it remains a price sensitive market with very tight margins. There may be no stronger illustration of this than Samsung, the world's largest phone maker, that has decided to open the world's largest phone factory there.

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