Huawei begins making phones in India

Editor:AT0086| Resource:China Daily

FavoriteMy Favorite

Huawei begins making phones in India

Attendees test the P9 smartphone, manufactured by Huawei Technologies Co, during a launch event inNew Delhi, India.[Photo/Agencies]

Huawei Technologies Co will begin assembling phones in India with manufacturing partnerFlextronics International Ltd, establishing a beachhead in the world's fastest-growingsmartphone arena.

The Chinese company expects to have Flex put together its first gadgets starting October,Jay Chen, the chief executive for Huawei's Indian business, told reporters at a newsconference.

Huawei, the world's third largest smartphone maker, joins rivals from Samsung ElectronicsCo and Apple Inc in targeting one of the few markets still rapidly expanding as globaldemand stagnates. But intense competition between market leader Samsung and Chinesenames such as Xiaomi Corp and Lenovo Group Ltd has begun to depress margins.Grabbing a solid share of India, however, could further Huawei's stated ambition ofdisplacing Apple and Samsung to become the world's top maker of phones.

India, the world's second-largest smartphone market, is on the cusp of a phonemanufacturing boom spurred by the government's "Make in India" drive. Huawei joins agrowing list of foreign names, from Xiaomi to Lenovo, now getting their phones put togetherin the country. For now, however, that mainly consists of assembling semi-knocked-downphone kits rather than the end-to-end manufacturing that China's known for.

Chinese companies in particular have been keen to set up shops in India, as growth at homeslows. Before Huawei, LeEco was the most recent to get in on the act, contracting a facility toassemble 60,000 phones a month, rising eventually to 200,000.

More than two-thirds of the smartphones shipped in the first quarter of 2016 were assembledin India, said Jaipal Singh, a market analyst for client devices at researcher IDC.

Vendors who are currently assembling phones are likely to start manufacturing componentslike batteries, chargers and data cables with tax incentives offered by the federal andregional governments, IDC said in a report.

Huawei has emerged in past years as China's leader in high-end phones, eschewing thelower-end models that rivals like Oppo and Vivo favor. Founded in 1987 by former armyengineer Ren Zhengfei, Huawei used its business of selling networking gear to bankroll itsinitial foray into premium phones. It's among a crop of Chinese smartphone vendors nowsteadily draining market share from Samsung and Apple globally.

Reprinted from China Daily

View all comments

  • Your comments
  • I'mguest,click here if not.
  • Express your idea in short *
  • Have more to say?
  • Comments only represent personal attitudes. China Service Mall does not approve or verify all comments.