Samsung Builds the World’s Largest Phone Factory in India

By Nitish Singh / July 9, 2018

With India being home to 1.3 billion people, only 400 million users have access to smartphones, making the country one of the prime markets for mobile manufacturers to tap into. Samsung is attempting cash in on the untapped potential by unveiling the world’s largest phone factory in Noida, India. Samsung will focus on manufacturing both entry-level smartphones under the $100 price point as well and premium flagships like the Galaxy S9 and upcoming top-shelf smartphones.

Despite India being one of the largest markets in the world, the target audience is highly price-sensitive, and manufacturers like Xiaomi manage to tap into the market by offering devices at extremely low-profit margins. Samsung is the leading mobile manufacturer globally, and it can cash in on the untapped market potential of the country to strengthen its position.

Samsung was the leading mobile brand in India until recently when Xiaomi took the lead after the Chinese company set up their own manufacturing unit in the country. Samsung is now following suit and will be focusing on shipments in the Indian subcontinent. Noida is part of the Indian capital Delhi and is a prime business hub. South Korean President Moon Jae-In and Indian Prime Minister Narendra Modi are part of the inauguration event today.

With the recent “Make in India” initiative implemented by the Indian Government, imported products now incur increased tariffs. Mobile devices that are imported from outside India chalk up 20% in duties, making them quite expensive. With Samsung setting up its factory in India, we can expect more competitive pricing. Apple set up its own factory in the country too but it manufactures only the iPhone SE and the iPhone 6S currently, both of which are competitively priced.

Do you think the new factory will bring down Samsung phone prices in India? Let us know in the comments below. Also, to get instant tech updates, Follow TechNadu’s Facebook page, and Twitter handle.

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