India is now world's second largest mobile phone producer: ICA

[itachii]

India is now the second largest mobile phone producer in the world after China, as per information shared by Indian Cellular Association with Telecom Minister Manoj Sinha and IT Minister Ravi Shankar Prasad.

"We are happy to inform you that with the strenuous and calibrated efforts of government of India, ICA and FTTF, India has now emerged as the second largest producer of mobile handset by volume," ICA National President Pankaj Mohindroo said in a letter to both the union ministers on March 28.

ICA referred to data available from market research firm IHS, China's National Bureau of Statistics and Vietnam General Statistics Office.

According to the data shared by ICA, annual production of mobile phones in India increased from 3 million units in 2014 to 11 million units in 2017.

India replaced Vietnam to become second largest producer of mobile phones in 2017.

With the rise in mobile phone production, imports of the devices in the country also reduced to less than half in 2017-18.

"We are also happy to inform you that our completely build units as percentage of domestic market has now come down from 78 per cent (2014-15) to 18 per cent (2017-18)," Mohindroo said.

The fast track task Force, a body under Ministry of Electronics and IT, has set target to achieve around 500 million mobile phone production in India by 2019, with value estimated to be around USD 46 billion.

The FTTF (), which has members from industry and government, has set target to create USD 8 billion component manufacturing as result of growth in mobile phone production and create 1.5 million direct and indirect jobs by 2019.

The body has set the target to export 120 million mobile phone units with an estimated value of USD 1.5 million by the end of next year.

"As long as we bring the right focus on exports, we will be able to achieve these numbers," Mohindroo said.

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[UKBengali]

How many of these phones are manufactured as opposed to assembled in India?
By manufactured, all bar SOC and RAM modules are made by Indian companies.

 

[itachii]

Foxconn’s India arm stepped up its local manufacturing efforts by starting the assembly of printed circuit boards (PCBs), which will likely benefit clients such as Chinese phone company Xiaomi and HMD Global, the makers of Nokia devices, as it will give them a price advantage over rivals that have to pay duty on imported PCBs, widely expected to be levied from April.

PCBs make up about 50% of the cost of making a phone. South Korea’s Samsung is among the only major brand that assembles PCBs in India.

“They (Foxconn) have begun assembling PCBs in India,” said a person with knowledge of the development. Foxconn’s move is a boost for Make in India. India had raised basic customs duty (BCD) on smartphones to 20% in the Union Budget from 15% earlier, which became effective February 1. Import duties have acted as a catalyst for the establishment of nearly 120 mobile phone manufacturing companies since 2014. However, many of these were assembling handsets at less than 10% value addition.

Local Value Addition to Rise

With PCB assembly and manufacturing of some other components, local value addition is set to rise to 15%, ??analysts at Counterpoint Research said. Foxconn Technology Group said it “follows a strict company policy of not commenting on any matters related to current or potential customers, or any of their products.”

The world’s largest contract manufacturer, also the biggest contract manufacturer for phones in India, has acquired machinery that enables surface mounting on PCBs from the now-defunct Nokia plant in Sriperumbudur, near Chennai.

The company currently has a phone manufacturing facility at Sri City, Andhra Pradesh, located on the border with Tamil Nadu, employing about 6,000 people to produce more than 15 million phones a year for companies such as Xiaomi, HMD Global, which makes Nokia-branded phones, and Gionee.

“Companies like Xiaomi and HMD Global will benefit, as they won't have to increase prices, while others who will continue to import PCBs will have to raise prices of mobile phones,” said Navkendar Singh, research director at International Data Corporation (IDC) India.

Xiaomi may be able to sell a model for less than Rs 5,000 since it has volumes and the saving on local assembly will give it greater margins for marketing and distribution, making it a stronger player, Singh said. This is critical in a price-sensitive market like India, where most smartphones are sold in the under-` 0,000 band.

Xiaomi, which recently replaced Samsung as the country’s No 1 smartphone maker by shipments, declined to comment. HMD Global didn’t respond to ET’s queries.

Ajey Mehta, head of India operations at HMD Global, had told ET earlier that the company was working with its partners to manufacture more components in India. “SMT is definitely on the card for us,” he said. SMT, or surface mounting technology, lines are used for assembling PCBs.

Read more at:
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How many of these phones are manufactured as opposed to assembled in India?
By manufactured, all bar SOC and RAM modules are made by Indian companies.

All most all of them are assembled. But the value addition is going to be increased as Foxconn is set to start pcb manufacturing in India, while vedanta group already bought a LCD manufacturing company based out of JApan in dec 2017 and is set to open manufacturing plant in India sometime between 2018-19.

 

[Chhatrapati]

How many of these phones are manufactured as opposed to assembled in India?
By manufactured, all bar SOC and RAM modules are made by Indian companies.

Not necessarily. But made in India by foreign companies. Assembled one's don't carry a made in India tag. The op is talking about the former.

 

[UKBengali]

Foxconn’s India arm stepped up its local manufacturing efforts by starting the assembly of printed circuit boards (PCBs), which will likely benefit clients such as Chinese phone company Xiaomi and HMD Global, the makers of Nokia devices, as it will give them a price advantage over rivals that have to pay duty on imported PCBs, widely expected to be levied from April.

PCBs make up about 50% of the cost of making a phone. South Korea’s Samsung is among the only major brand that assembles PCBs in India.

“They (Foxconn) have begun assembling PCBs in India,” said a person with knowledge of the development. Foxconn’s move is a boost for Make in India. India had raised basic customs duty (BCD) on smartphones to 20% in the Union Budget from 15% earlier, which became effective February 1. Import duties have acted as a catalyst for the establishment of nearly 120 mobile phone manufacturing companies since 2014. However, many of these were assembling handsets at less than 10% value addition.

Local Value Addition to Rise

With PCB assembly and manufacturing of some other components, local value addition is set to rise to 15%, ??analysts at Counterpoint Research said. Foxconn Technology Group said it “follows a strict company policy of not commenting on any matters related to current or potential customers, or any of their products.”

The world’s largest contract manufacturer, also the biggest contract manufacturer for phones in India, has acquired machinery that enables surface mounting on PCBs from the now-defunct Nokia plant in Sriperumbudur, near Chennai.

The company currently has a phone manufacturing facility at Sri City, Andhra Pradesh, located on the border with Tamil Nadu, employing about 6,000 people to produce more than 15 million phones a year for companies such as Xiaomi, HMD Global, which makes Nokia-branded phones, and Gionee.

“Companies like Xiaomi and HMD Global will benefit, as they won't have to increase prices, while others who will continue to import PCBs will have to raise prices of mobile phones,” said Navkendar Singh, research director at International Data Corporation (IDC) India.

Xiaomi may be able to sell a model for less than Rs 5,000 since it has volumes and the saving on local assembly will give it greater margins for marketing and distribution, making it a stronger player, Singh said. This is critical in a price-sensitive market like India, where most smartphones are sold in the under-` 0,000 band.

Xiaomi, which recently replaced Samsung as the country’s No 1 smartphone maker by shipments, declined to comment. HMD Global didn’t respond to ET’s queries.

Ajey Mehta, head of India operations at HMD Global, had told ET earlier that the company was working with its partners to manufacture more components in India. “SMT is definitely on the card for us,” he said. SMT, or surface mounting technology, lines are used for assembling PCBs.

Read more at:
//economictimes.indiatimes.com/articleshow/63552812.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst



All most all of them are assembled. But the value addition is going to be increased as Foxconn is set to start pcb manufacturing in India, while vedanta group already bought a LCD manufacturing company based out of JApan in dec 2017 and is set to open manufacturing plant in India sometime between 2018-19.

OK so not a single smartphone is manufactured in India and Foxconn is a foreign company.
Talk when India can actually make smartphones.

Not necessarily. But made in India by foreign companies. Assembled one's don't carry a made in India tag. The op is talking about the former.

So Indian companies have made zero smartphones so far.

 

[itachii]

OK so not a single smartphone is manufactured in India and Foxconn is a foreign company.
Talk when India can actually make smartphones.

Comment when BD has made anything worth commenting for.

 

[Chhatrapati]

So Indian companies have made zero smartphones so far.

OK so not a single smartphone is manufactured in India and Foxconn is a foreign company.
Talk when India can actually make smartphones.

man, no body gives a flying f-uck about butthurt of LDC coolies. Do you see the green bills and number of jobs created? That's what matters. Let them create the base for manufacturing, companies like Micromax, Lava etc... will eventually shift their manufacturing to India.

manufactured in India

Go and introspect why none of these companies are shifting their manufacturing base to LDC sh*thole.

 

[UKBengali]

Go and introspect why none of these companies are shifting their manufacturing base to LDC sh*thole.

LG and Samsung have both announced major investments in BD recently for both local consumption and exports.

World's number one open defecator calling BD a "shithole"? lol

 

[Zen0]

How many of these phones are manufactured as opposed to assembled in India?
By manufactured, all bar SOC and RAM modules are made by Indian companies.

Its more expenvive to import due to anti dumping measures , so companies prefer to manufacture in India , example iPhone's used to cost 4x more in India , if a component was damaged it will cost a fortune to repair. Now Apple has its own manufacturing plant in India , so its cheaper. Same with cars .

 

[UKBengali]

Its more expenvive to import due to anti dumping measures , so companies prefer to manufacture in India , example iPhone's used to cost 4x more in India , if a component was damaged it will cost a fortune to repair. Now Apple has its own manufacturing plant in India , so its cheaper. Same with cars .

I get that but India needs to make it's own stuff.

 

[Chhatrapati]

LG and Samsung have both announced major investments in BD recently for both local consumption and exports.

World's number one open defecator calling BD a "shithole"? lol

Lol! LG and Samsung will do the same thing what you blabbered in post #2. Do you even have the industry to support any manufacturing? Not even the LDC crap you manufacture called garments, you still import raw materials.
Well, UK guy may not know what kind of shThole is LDC swampland.
Can't blame if Mashrafe is doing Rickshafe there too.

 

[Nilgiri]

man, no body gives a flying f-uck about butthurt of LDC coolies. Do you see the green bills and number of jobs created? That's what matters. Let them create the base for manufacturing, companies like Micromax, Lava etc... will eventually shift their manufacturing to India.


Go and introspect why none of these companies are shifting their manufacturing base to LDC sh*thole.

Let the coolie cry. His LDC can't even reduce their assembly duties (of anything even semi-important to an economy today) to anything reasonable in the first place because their politicos just want to have one sector they can control, influence and micro and macro manage the corruption/extraction in. They rather tinker with tarriffs only (i.e shield the crazy duties and permeated inefficiency in assembly) for some semblance of WALTON STRONK optics (no revenue release, no real jobs created, no strategy) and then these lot cry why their purchasing power is extremely low.

So anyway, targetting the bulk of the MVA should always be the first priority...given thats what provides the most capital buffer and jobs. India is on the correct track here.... Samsung is already charting out domestic OEM production for PCBs and so on....the rest will follow soon esp with the tariffs modi admin is now bringing in at right time in the capex cycle. There was a recent article regarding Foxconn on this very topic.

 

[Zen0]

I get that but India needs to make it's own stuff.

Why? capitalism is a win-win scenario, banning foreign brands or making it so its impossible to buy it will stagger your economy

Besides we do have native mobiles Like Reliance

 

[Species]

OK so not a single smartphone is manufactured in India and Foxconn is a foreign company.
Talk when India can actually make smartphones.




So Indian companies have made zero smartphones so far.

They don't have any smartphone manufacturing facility because of lack of skilled workforce, quite understandable with these infected low IQ roadshitters. All of their production are assembled from imported components.
Despite Make in India, smartphone manufacturing flounders on lack of labour, complex tax

Of course these effeminate smelly shithole dwellers will try to prove otherwise with their Vedic statistics.

 

[UKBengali]

Lol! LG and Samsung will do the same thing what you blabbered in post #2. Do you even have the industry to support any manufacturing? Not even the LDC crap you manufacture called garments, you still import raw materials.
Well, UK guy may not know what kind of shThole is LDC swampland.
Can't blame if Mashrafe is doing Rickshafe there too.

Butt-hurt loser from a multi-ethnic mess.
My reply was to shut you up that no major multinationals are investing in BD.
Not an issue as Walton will manufacture smartphones from scratch in BD, bar SOCs and RAM modules.

Only reason to welcome Samsung and LG into BD is to provide stiff competition to allow the home-grown companies to keep their quality high.

Let the coolie cry. His LDC can't even reduce their assembly duties (of anything even semi-important to an economy today) to anything reasonable in the first place because their politicos just want to have one sector they can control, influence and micro and macro manage the corruption/extraction in. They rather tinker with tarriffs only (i.e shield the crazy duties and permeated inefficiency in assembly) for some semblance of WALTON STRONK optics (no revenue release, no real jobs created, no strategy) and then these lot cry why their purchasing power is extremely low.

So anyway, targetting the bulk of the MVA should always be the first priority...given thats what provides the most capital buffer and jobs. India is on the correct track here.... Samsung is already charting out domestic OEM production for PCBs and so on....the rest will follow soon esp with the tariffs modi admin is now bringing in at right time in the capex cycle. There was a recent article regarding Foxconn on this very topic.

Hey, hey there loser lol

Walton is growing sales 30-40% every year and totally dominates a very fast growing economy of 160 million people in key sectors. Check out the new thread based on IMF report where BD totally leads S Asia in inclusive economic development.