Samsung opens Indian factory that can make 120 million smartphones per year

Jul

10

2018

Samsung will open a new smartphone factory near New Delhi on Monday. The factory, an extension of an existing production facility, must be able to make 120 million smartphones per year.

Bloomberg writes that the factory will produce different types of devices, from low-end models of under one hundred dollars to the Galaxy S9 smartphones. Local sources report that the production capacity of the Samsung plant has been around 67 million units a year so far, so the capacity is almost doubled due to the expansion. The factory will be opened on Monday by Indian Prime Minister Narendra Modi and South Korean President Moon Jae-in.

The financial news agency cites figures that there are approximately 425 million smartphone users on the 1.3 billion inhabitants of India. Samsung would like to meet the growing demand for devices with the new factory. For example, in India there would be mainly interest in smartphones under $ 250 and less in more expensive ones.

The Chinese manufacturer Xiaomi, who announced in April wanting to open three factories in India, took over the first place Samsung this year when it comes to smartphone sales in the country, according to Bloomberg.

The Indian government has been keen for years to bring the production of smartphones to India as part of the ambitious Make in India program. In October last year Reuters wrote that many manufacturers, however, proceed to assemble the phones only in the country, based on imported parts, because of the tax on imported phones. The lack of skilled personnel would be an obstacle for manufacturers, the press service wrote.

In 2015 , Business Korea reported that Samsung makes its devices in Vietnam, China, India, Brazil, Indonesia and South Korea and wants to reduce its production in China because of rising labor costs in that country. At the time, Samsung could make up to 150 million smartphones in China and 240 million in Vietnam. It is not known which major shifts in production have taken place since then.

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