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Samsung could move major part of smartphone production to India

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Last updated: August 17th, 2020 at 06:58 UTC+02:00

Over the past few years, Samsung has increased the smartphone production in India. The South Korean tech giant has its biggest smartphone factory in Noida, India. Now, it is being reported that the company is trying to move a significant part of its smartphone production from Vietnam and other countries to India.

According to a new report from The Economic Times, Samsung is planning to manufacture smartphones worth $40 billion in India. A person familiar with the company's plans told the publication that Samsung will diversify its production lines for making smartphones in the country under the Government of India's PLI (Production Linked Incentive) scheme. This plan is said to have an impact on its existing smartphone production in Vietnam and other countries.

Out of the $40 billion worth of smartphones that Samsung plans to make in India over the next five years, devices with a factory price of $200 could account for over $25 billion. A senior government official said that most smartphones produced in the above $200 category will be exported to other markets from India.

The company is said to be in the process of winding down the production of mobile phones in South Korea due to high labor costs. As per industry estimates, Samsung makes around 50% of its smartphones in Vietnam. The company also manufactures smartphones in Brazil and Indonesia.

The South Korean firm also makes TVs in India for the local market and has plans to start a smartphone display plant in the country. Samsung's primary rival, Apple, has increased the production of iPhones in India. It first started with the production of older, low-cost smartphones in the country. However, it recently began making devices like the iPhone XR and the iPhone 11 in India.

Source Business India
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