India’s smartphone markets have grown up to 14% with a total of 124million unit shipments in 2017, as per the IDC (International Data Corporation). This is the fastest pace of growth that has happened among the top ranking 20 markets. Since 2014, PM Modi has been pushing the initiative, “Make In India”, encouraging companies to set up industries in India. India has attracted the highest FDI last year with a total of $62million inflows. Under the Samsung companies S9 model, the new Samsung factory will have the capability to generate 120 million smartphones per year, and make everything that costs under $100. The Indians, mostly prefer low-end smartphones priced at $250 or less, given the low average annual income of its people, as per the Bloomberg Intelligence.
Samsung Electronics Co. said as there is an inflating demand on the smartphones and it’s going to open the world’s largest mobile phone manufacturing facility on the outskirts of Delhi. The factory is in Noida and it will be inaugurated by our Prime Minister Narendra Modi and South Korean President Moon Jae-in today.
Faisal Kawoosa, who heads new initiatives at researcher CMR Pvt. said, “the opportunity is just massive.” “Such a large facility will help Samsung cater to the huge demand in a country of 1.3 billion people where there are only 425 million smartphone users”.
The demand for new phones was helped in part by Mukesh Ambani offering approx. Rs1500 4G feature-phones with cheaper data plans and free voice services. Xiaomi Corp, Chinese smartphone makers had said in April that it will set up three more factories in India.
This is one reason why Apple Inc. has struggled to increase its market share in India, with most models priced beyond Rs 34,000 (approx.), as per the Bloomberg Intelligence (reported earlier this month).