Lava to soon shift manufacturing base from China to India

[isro2222]

HAHAHAHAHAHAHAHA CHINA's THE END STARTED. Communist fi!th Caged nation. Wanted to be Nazi but india burst your bubble. Slowly china will be pushed towards poverty. Go0gle it how 1 million chinese people set to loose job and go into poverty as investors set to move out of china. HAHAHAHAHAHAHAHAHAHA good bye communist nation.

 

[jugad]

Good news, Micromax already assembles phones here i think. Anyways this coupled with initiatives like android one will help desi manufactures put up devices at par with other competitors i believe

 

[cirr]

You guys will soon be able to buy Samsung smartphones for a lot less of your hard-earned rupees thanks to competition from Chinese smartphone makers。So be thankful and grateful。

Samsung’s primacy is tested in China

By Jonathan Cheng

Published: Oct 27, 2014 10:48 p.m. ET
South Korean giant to roll out cheaper line of phones to fend off competition from Xiaomi, others

Bloomberg

SHANGHAI — Samsung Electronics Co. ’s attempt to stay on top of the fast-changing smartphone business will depend on winning back people like He Wenzong.

The 30-year-old apparel-company employee and Shanghai resident last year traded his Galaxy S3 phone, one of Samsung’s most successful products, for a handset made by Beijing-based upstart Xiaomi Inc., which a few months ago displaced Samsung as China’s No. 1 smartphone seller.

Xiaomi’s phone offers better software and services, Mr. He says, at a fraction of a new Samsung’s price. “To me, it looks like it’s the same quality, but one costs 2,000 yuan ($327) and the other is 3,500 yuan,” says Mr. He. “So why would I pick Samsung?”

Across China — and around the globe — other people are starting to feel the same way. Samsung has lost its top position for mobile-phone sales in India, and research firms that track smartphone shipments say it is in danger of being toppled in Thailand and the Philippines. Though Samsung is still the No. 1 smartphone maker globally, it has been losing market share in recent quarters.

In China, where Samsung 005930, +0.18% SSNLF, -4.36% gets 18% of its total sales, more than half of which is from the mobile-phone division, the company is parachuting in executives and outside consultants to assess the problem and figure out how to fix it, according to people with knowledge of the moves. The company is lowering prices for its existing handsets by up to 20%, considering a new marketing strategy in the country, and preparing to roll out a new, cheaper line of smartphones for emerging markets, the people said.

The steps are part of a larger attempt to shore up the mobile-phone division, which accounts for around 60% of Samsung’s operating profit.

On Thursday, the company is expected to report that operating profit for the quarter ended in September has fallen by about 60% from a year earlier, following a 20% decline in the quarter before, largely because of what the company acknowledged was “increased competition” in China.

 

[WikiLeaks 15]

Look like ur trolling ur own thread ....

 

[janon]

...
So what's India excuse for implementing liberalization only half a century after independence?
...

Same as China's, and many other nations east of the iron curtain - adherence to misguided ideologies and economic systems. It's not an excuse, but the reason - we followed Soviet Union's centrally planned economic model, with govt control of all economic activity, instead of free market economics and capitalism. Now why did we keep following it? Power of rhetoric and propoganda, I suppose.

 

[Tangent]

......China is Miles ahead of India in electronics manufacturing...
It has developed a good ecosystem for the electronic business to thrive...
..India can not think o fbeating China till it develops semiconductor industry..
presently we do not have any semiconductor / chip/ PCB makers in India..

 

[karan21]

The main point to take away from the article is that the government is providing 25% subsidy + tax free land and almost non existent import duties. This way Indian manufacturers can import parts from China and assemble them in India. Now coming to point of manufacturing of real components in India, it's still out of sight. India just doesn't have the ecosystem required.

Given that Modi's was of ruling is similar to Ronald Regan, I am sure his government will give even more under the table subsidies if asked for. Modi is notoriously known to give away land to manufacturers way below the market price. That is his way of attracting manufacturers. Well it works!!!!

If I was a mobile manufacturer I would love to start manufacturing operations in India as soon as possible. Micromax, karbonn, lava etc the earlier these companies grab the land and resources required the better it is. Soon the government will pull the grip.

 

[UKBengali]

lol... why Chinese are feeling the heat..
u became a 2 trillion economy in 2004-5 India in 2014... its a gap of jst 10 year. which will keep on narrowing now... jst wait and watch...
Chinese liberalization started in 1975-76,.indian liberalization started in 1991-92..... being starting before us, u had the advantage.. but now tides are turning..jst wait and watch....

Err no. You forget inflation.

China was the 5th/6th largest economy in 2004 and India is still 10th/11th in 2014

 

[Abingdonboy]

It's pretty simple really- China's economy is very large and per capita incomes have grown quite sharply in the past decade, in India they are still far lower so it is cheaper to manufacture in India, this is just how it is. One day India will have the same problem (a nice problem to have really) and the global manufacturers will have too look somewhere else, probably Africa.

Good for China though, they have gone through their industrialisation process and their population is surely set to benefit from this.

 

[k7x]

Rare earth materials.

We should have that else no use in starting assembly ops

 

[walle990]

It's pretty simple really- China's economy is very large and per capita incomes have grown quite sharply in the past decade, in India they are still far lower so it is cheaper to manufacture in India, this is just how it is. One day India will have the same problem (a nice problem to have really) and the global manufacturers will have too look somewhere else, probably Africa.

Good for China though, they have gone through their industrialisation process and their population is surely set to benefit from this.

India has been cheaper than China for almost a decade along with many south east asian countries. But none of the latter has the supply chain integration and human capital (low cost SKILLED workers). In fact, Chinese wages has surpasses those of mexico several years ago, yet chinese manufacturing still dominates the north american market even with NAFTA.

If LAVA is just a first of things to come., u can see Japanese will shift their base as well
Chinese bullying might actually help India s way ..

When India has the same consumer base as china, then maybe they will move. Most Japanese brands esp, consumer electronics are already being displaced by chinese counterparts.

 

[Abingdonboy]

India has been cheaper than China for almost a decade along with many south east asian countries. But none of the latter has the supply chain integration and human capital (low cost SKILLED workers). In fact, Chinese wages has surpasses those of mexico several years ago, yet chinese manufacturing still dominates the north american market even with NAFTA.

Well this will now begin to change as wages continue to rise in China and the Indian Govt gets their act together on attracting manufacturers into India. Additionally this shift to India is unlikely to be as short lived as the Chinese industrial period for the very fact that despite having similar size populations, India has a far larger demographic dividend (60% of the country is under the age of 30) meaning that India won't run into the same "wall" as China in a few years/decades time as the supply of labour will be almost endless in India- the same cannot be said of China thanks to policies they initiated a long time ago.

 

[Genesis]

So an Indian company is moving to India is the story.

Well this will now begin to change as wages continue to rise in China and the Indian Govt gets their act together on attracting manufacturers into India. Additionally this shift to India is unlikely to be as short lived as the Chinese industrial period for the very fact that despite having similar size populations, India has a far larger demographic dividend (60% of the country is under the age of 30) meaning that India won't run into the same "wall" as China in a few years/decades time as the supply of labour will be almost endless in India- the same cannot be said of China thanks to policies they initiated a long time ago.

sure sure, but keep this in mind.

When China started the world had only China capable of doing this. Now, there's Africa, Latin America, South Asia, and South East Asia all wants a piece of that manufacturing pie.

Does India have advantages? Sure, but there are also draw backs.

For example, for as many people that gets pulled out of poverty, others are added to the mix. Indian education still needs work, a lot of countries like Indonesia, Vietnam, Bangledesh, Ethiopia and more are already in the mix along with India.

Automated manufacturing is already a thing, and India needs more in terms of capital and time for infrastructure than say a smaller country does which limits its attractiveness.


China's one child policy may have problems, but the number of people able to serve in the high end manufacturing and service industry is far more than the same in India, so in effect the single person productiveness far out ranks yours.


This is not a comparison, just that we both have problems, and we both have advantages, if you read carefully on the articles of India and China, both are "projections," they are more affected by the fact, the English speaking world, namely the West and India wants India to win rather than China, and while based on facts, the conclusion one can come to is largely dependent on how they want to see things, need infrastructure? You can see it as jobs for the low skilled? Or can't function as an effective society. Depends on what you want to think.

 

[Dem!god]

Err no. You forget inflation.

China was the 5th/6th largest economy in 2004 and India is still 10th/11th in 2014

err... what..
make a more understandable statements from next time...
u are jst shooting of in two diff. tangents...