Sam­sung’s In­dian phone fac­tory to have ‘lim­ited im­pact’ on Chines

Global Times US Edition - - BIZOVE - By Zhang Hong­pei

South Korean tech group Sam­sung and Chi­nese ven­dors are all bet­ting on In­dia, one of the fastest grow­ing smart­phone mar­kets in the world. But Sam­sung’s new mo­bile phone man­u­fac­tur­ing plant in the South Asian coun­try, its big­gest mo­bile phone plant in the world as re­ported, will only have a lim­ited im­pact on its Chi­nese com­peti­tors, Xiaomi in par­tic­u­lar, said an ex­pert.

The new plant lo­cated in Noida, on the out­skirts of New Delhi, was in­au­gu­rated on Mon­day. It will help Sam­sung grad­u­ally dou­ble its cur­rent an­nual pro­duc­tion ca­pac­ity in In­dia from 67 mil­lion phones to 120 mil­lion in the next three years, ac- cord­ing to a re­port by the Times of In­dia.

Var­i­ous play­ers have al­ready made in­roads to bet on the lu­cra­tive smart­phone mar­ket in In­dia. Chi­nese brand Xiaomi be­came the top seller in the coun­try, ac­count­ing for 25 per­cent of In­dian smart­phone sales in the last quar­ter of 2017, over­tak­ing Sam­sung’s 23 per­cent, ac­cord­ing to con­sul­tancy Coun­ter­point Re­search.

Data from the IDC showed in May that Xiaomi se­cured the top spot in terms of mar­ket share in In­dia with 38.4 per­cent in the first quar­ter of this year, trailed by Sam­sung with 10.4 per­cent. Two other Chi­nese smart­phone ven­dors, Oppo and Vivo, fol­lowed be­hind with 7.9 per­cent and 6.0 per­cent, re­spec­tively.

Sun Yan­biao, head of Shen­zhen- based re­search com­pany N1­mo­bile, told the Global Times Wed­nes­day that Sam­sung has lost smart­phone mar­ket share in China as do­mes­tic brands like Xiaomi, Huawei and Oppo have quickly grabbed the mar­ket with cheaper prices, bet­ter qual­ity and strong mar­ket­ing.

“I think the In­dian plant in­di­cates Sam­sung’s in­ten­tion to take root deeply in the coun­try. At the same time, it seems like a re­treat­ing ap­proach un­der the pres­sure of ris­ing Chi­nese play­ers by trans­fer­ring its once ma­jor mar­ket to In­dia, where the pop­u­la­tion div­i­dend is be­ing grad­u­ally re­leased,” Sun ex­plained.

Xiaomi and Oppo de­clined in­ter­view re­quests from the Global Times to com­ment on the is­sue.

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