Samsung doubles down on smartphone production in India with huge new investment
They say you have to spend money to make money, and while Apple continues to eclipse arch-rival Samsung in terms of global smartphone profits, the chaebol can definitely hope for a reversal of fortune down the line, when its large investments in key markets may spectacularly bear fruit.
It’s no secret that India still has plenty of room for growth, especially when it comes to high-end mobile devices, as once popular feature phones finally near local oblivion, and the average selling price of intelligent handhelds starts rising.
Sounds like a golden opportunity for iPhones to go mainstream around those parts as well, but their Cupertino-based producers remain wary of splashing the cash as they timidly join the government’s “Make in India” initiative.
In the meantime, Samsung, which believe it or not, began manufacturing operations in India two whole decades ago, is looking to double, yes, double its smartphone-making capacity in the National Capital Region city of Noida, Uttar Pradesh, near New Delhi.
We’re talking a whopping 10 million Android (and Tizen and some dumb) gadgets to be built and assembled each month before long, up from a current tally of “only” 5 million units, on a 240,000 square-meter land itself set to double the existing production line’s 120K m2 spread.
Samsung will infuse no less than 40 billion rupee (over $620 million) in this massive expansion of its primary Indian plant, clearly aiming to control even more than 25 percent of the market, as well as likely export goods from the South Asian state to the entire neighboring region.