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 marketgrew 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’s 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.