Samsung is opening the world’s biggest smartphone manufacturing factory in India

By Shehryar Ahmed on
July 9, 2018
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Samsung Electronics has opened the world’s largest manufacturing plant in India. The ceremony was attended by the Prime Minister of India, Narendra Modi and the South Korean President, Moon Jae-in. The factory is claimed to be the world’s biggest, with a production capacity of up to 120 million phones annually. The factory is situated in Noida, which is located in the state of Uttar Pradesh.

Samsung’s decision to expand their existing operations come courtesy of the Government of India’s Made in India Initiative, which also saw Apple deciding to start production of the iPhone 6 locally in India. The Made in India initiative has attracted a record amount of $62 billion of foreign direct investment to the country.

The Indian market is one of the most enticing markets worldwide. With a population of 1.3 billion people and a current smartphone user base of 425 million people, India is the second largest smartphone market in the world. To further sweeten these numbers, this figure is expected to grow to 700 million users by 2021. This growth rate is in line with the current growth of the Indian market, which saw a 14% rise in shipments in 2017.

According to Samsung, the factory will produce a number of smartphones, starting from budget phones priced near $100 all the way up to the flagship model, Galaxy S9. The Indian market is intensively price-sensitive, which can be seen by how Samsung wanted to meet consumer demands by expanding their production capacity instead of importing handsets into the country (which would subject them to a tax of 20%).

Although Samsung is the top smartphone manufacturer globally, it has failed to retain its throne in India, wherein it was taken over by Xioami. Xiaomi has multiple factories set up throughout the country, meaning that their phones are not subject to the 20% tax as well. Question is, will Samsung’s initiative actually have a role in increasing their market share in the country or will they be overpowered by other manufacturers like Xiaomi in the future as well?

India is progressing rapidly in the field of technology. They have managed to attract many multinational companies to the country. Their progress should serve as a base for the upcoming Pakistani government to introduce measures that bring these companies to Pakistan as well. After all, we want more jobs too, right?

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