Samsung has made a major move this year by finally opening
the largest smartphone factory in Noida, India.
This is especially a very lucrative deal for India since the country has been
looking to attract more investors. This initiative has been a major concern for
the Prime Minister of India Narendra Modi who has been working effortlessly to
lure investors to India.
In attendance of the big unveiling was also the President of
South Korea President Moon Jae-in. The
new plant is supposed to see the doubling of Samsung’s Noida facility’s
capacity from 68 million units annually to an estimated 120 million units in a year.
The expansion has been in stages with the final touches expected to end in
2020. President Moon Jae-in plans to tap into the 425 million smartphone users in India and a population of 1.3 billion people.
According to
International Data Corporation, India’s
market grew by 14 per cent in 2017 with an
astounding total shipment of 124 Million units that year alone. This is a great
opportunity for other smartphone
manufacturers like Apple, VIVO, Huawei, Oppo and Xiaomi Corp planning to build
three factories in India to meet this ever-growing
demand for mobile phones in India. This
will increase their market shares over the coming years as it is cheaper to
manufacture in India than to import electronic goods in India. This is due to high
taxes by the Indian government.
On the bright side,
the many plants will help to improve the lives of the Indian people by
providing job opportunities and the myriad of other capabilities that smartphones have gained over the past few years
especially in the mobile banking industry. India
is on the verge of becoming a global mobile phone export hub. Earlier this year Xiaomi ousted Samsung from the leading smartphone
provider in India since the Xiaomi models are cheaper compared to the high-end
devices manufactured by Apple and Samsung. The new Noida Plant is focused on
providing from low-end mobile handsets to their latest high-end flagship
devices since most Indians favor low-end smartphones.
