lswcap
Samsung Electronics and Apple’s three major contract manufacturing partners are among the 16 recipients of $6.65 billion in subsidies in the Indian government’s plan to boost smartphone production over the next five years. These companies applied for the incentive project in August.
India’s Ministry of Electronics and Information Technology MeitY said in a statement on October 6 (local time) that the companies will produce smartphones and other electronic components worth more than $143 billion over the next five years. In return, India offers a 4% to 6% incentive for additional sales of locally produced products for five years from 2019 to 2020.
The goal of the Indian government is to promote Indian manufacturing and export industries and increase domestic employment. 60% of domestically produced products can be exported. These companies are expected to create direct employment opportunities for more than 200,000 people over the next five years and create indirect employment opportunities for more than 600,000 people in the same period.
This government move also foreshadows a shift in the dynamics between major smartphone makers over the next few years in India, the world’s second-largest market. The inclusion of Foxconn, Wistron and Pegatron is Apple’s intention to rapidly expand domestic production capacity in India. Wistron started assembling small batches of iPhones in India three years ago, followed by Foxconn. Pegatron has not yet started production in India.
If Apple and Samsung Electronics are combined, they account for nearly 60% of global smartphone sales, so this measure is expected to significantly increase production bases in India. He added that the industry trusts India’s tremendous progress as a target for world-class manufacturing and will respond strongly to the Prime Minister’s clear call for India to become self-reliant (AtmaNirbhar Bharat).
In addition to these companies, Indian companies (Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs, and Optiemus Electronics) are also recognized for their participation in the business. However, Chinese companies such as Oppo, Vivo, OnePlus and Xiaomi did not apply for the project. Chinese smartphone makers account for 80% of the Indian market. Samsung Electronics, which was once the best in the Indian market, is currently facing fierce competition from Xiaomi and Vivo. Related information can be found here.
Add comment