Chinese mobile phone brands have dominated the Indian market, monopolizing more than half of the market share, and in the fourth quarter, Xiaomi is very promising to become the boss of the Indian mobile phone market. Foxconn Group also benefited from the popularity of mobile phones in China. According to foreign media latest news, Foxconn Group is looking for land in India, the new handset manufacturing plant to serve more Chinese mobile phone customers.
In the past two years, Chinese handset manufacturers influx into the Indian market. With the Indian government implementing the tax reform, Chinese handset makers began to localize their cell phones in India, thereby reducing the cost by about 10%. And basically similar in the Chinese market, many Chinese brands entrusted to the Foxconn cell phone OEM, Foxconn reportedly foundry brands include Xiaomi, Jin Li, OPPO, etc., Foxconn also has its own mobile phone brand InFocus.
According to the website of the Indian Economic Times reported that the Indian Department of Foxconn Group, is currently India's Sriperumbudur's "Nokia Economic Development Zone" looking for land to build a new cell phone factory. According to the plan, by the end of this year, Foxconn Group's smart phone production capacity in India will reach 30 million units.
According to sources, Foxconn ready to build a new factory will serve two customers, including access to the Nokia brand authorized HMD companies, as well as China's Xiaomi. Both companies are rapidly expanding in India and the current capacity is no longer sufficient.
A source familiar with Foxconn's India expansion said Foxconn needed more capacity and the plant in Andhra Pradesh, India, is near the peak of capacity to accommodate the rapid expansion of mobile customers.
For India's capacity expansion, Foxconn officials did not comment.
According to reports, Sri Lanka in Andhra Pradesh, Foxconn Group has four factories for the HMD and the Chinese brand to produce smart phones or televisions, in addition to another in Chennai, a factory.
In the Indian mobile phone market, the most eye-catching Chinese brand is millet. According to statistics from several agencies, in the third quarter, Xiaomi won a quarter of its market share and Samsung Electronics Co., Ltd. has only one percentage point difference. In the fourth quarter, Xiaomi is expected to overtake Samsung to become No. 1 in the Indian market .
The cheaper rice of red rice under millet is very popular in the Indian market. In October, millet sold 4 million mobile phones in India.
In addition, after Foxconn and HMD companies, the acquisition of Microsoft's Nokia handsets business, and within a year, Nokia handsets in India also climbed to third place, the market demand is great.
Whether it is Xiaomi or Nokia mobile phones, cost-effective is the main competitive advantage, it must be in India to achieve local production, eliminating 10% import tariffs.
It is worth mentioning that in Chennai, India, Nokia had a huge mobile phone factory in Finland. In 2014, the factory was closed, leaving 14,000 people unemployed. Last year, Foxconn Group once filed an application to take over the factory. However, according to the latest report from the Indian media, the takeover process is slow. Therefore, Foxconn Group still decided to build a new factory instead of directly using the old Nokia factory.
According to reports, the Foxconn Group has taken a number of conditions for taking over the Nokia plant, such as Foxconn stationed should be free from previous legal and debt disputes, the other economic development zone where the factory should be transformed into a domestic customs territory, so Production of mobile phones can be directly in the Indian market. In addition, Foxconn has also demanded that the government of Tamil Nadu regard the plant as a government asset and personally be responsible for labor-related issues.
It is reported that the Indian government responded to Foxconn's request is not active, so far, Foxconn Group still can not use this large factory.
It is noteworthy that the rapid growth of smart phone market in India triggered the great interest of Chinese manufacturers, Apple, Samsung Electronics and other giants, in the recent news that Apple commissioned handset foundry Wistron, is looking for hundreds Mu land, the expansion of mobile phone factory. The factory previously produced Apple's cheap cell phone, iPhone SE, in the future, Apple may commission Wistron to produce more models of cell phones.
Statistics show that Apple is currently unable to find a presence in the Indian smartphone market, high prices for Indian consumers disappointed, the Chinese brand of Android phone performance configuration and Apple is not much difference, the price is only Apple's four five one.