Some companies have been trying to expand their production capacity and diversity it. In line with that, China-based OPPO and South Koren giant Samsung will start manufacturing smartphones in Turkey.

OPPO entered the Turkish market sometime back and now the company is all set to start production in two facilities, one in Istanbul and another in Northwestern Kocaeli province. It is expected to start operations next month.

It’s noteworthy that the company will be carrying out the entire production process in these two locations and not just the assembly work. As per the report, the necessary procedures have been completed and the company has invested $50 million to start with.

With devices getting manufactured in Turkey, the company will be exporting some of its smartphone models to other regions. The European market seems to be the main focus for this as the company already has a few facilities in Asia.

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On the other hand, South Korea-based Samsung Electronics also plans to start production in Turkey but unlike OPPO, the company won’t set up its own facilities but has hired a sub-contractor in Istanbul.

Just like other major companies, Samsung is also trying to expand its production facilities in other countries as the company focuses on reducing its reliance on Chinese companies. It recently started building a new display factory in India. The company already owns and operates the world’s largest smartphone production plant in Inda.

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The Indian government is encouraging international electronics companies to manufacture their products in the country by introducing new schemes. The Ministry of Electronics has announced an incentive of about ₹50,000 crores ($6.6 billion).

The government has introduced three new schemes and they are as listed below.

• Production Linked Incentive (PLI)
• Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
• Modified Electronics Manufacturing Clusters (EMC 2.0)

The most interesting out of three is Production Linked Incentive (PLI) scheme. The Ministry of Electronics has removed certain clauses, which were previously opposed by the companies.

The new updated scheme now states that companies can enforce force majeure in unfortunate times like the ongoing pandemic. Also, incentives ranging between 4% to 6% over a period of 5 years have also been introduced.

Smartphone companies interested in this scheme must manufacture high-end phones (above $200) worth ₹4,000 crores in the first year followed by ₹8,000 crores, ₹15,000 crores, ₹20,000 crores, and ₹25,000 crores in the next four years to be eligible for the incentives.

Whereas, SPECS, on the other hand, will grant an incentive of 25% on capital expenditure for electronic goods like semiconductor/ display fabrication units, Assembly, Test, Marking, and Packaging (ATMP) units, and others.

Lastly, EMC 2.0 will provide support for building world-class infrastructure with common facilities and amenities like Ready Built Factory (RBF) sheds / Plug and Play facilities.

With companies looking to shift their production base out of China, India could turn out to be a favorable region for smartphone manufacturers in the coming years. Apple, Xiaomi, and others already manufacture smartphones sold in India but such incentives are meant to attract more investment from manufacturers, with the possibility of positioning India as a global smartphone export hub. 

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(Source, Via)

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Chinese telecom giant and smartphone manufacturer Huawei is reportedly planning to start manufacturing its phones in India from next year. Further, it order to strengthen its foothold in the market, it is also planning to open around 1,000 exclusive stores.

Huawei’s Global Vice-President, Jim Xu, said to Times of India: “We look at India strategically and now intend to grow our presence through launch of devices in the mid-and-premium-end of the market.”

The company’s 2019 manufacturing plan is likely referring to Huawei’s own manufacturing force for premium and flagship models. This strategy is different from other Chinese brands such as Vivo, Oppo, and Xiaomi, which are heavily relying on the low-end and mid-end smartphone devices.

However, for Huawei, trying to capture more market share in the premium segment makes sense given that its sub-brand Honor is already achieving around 400 percent growth in sales revenues and is aiming to be the leading smartphone vendor in India by 2021.

While revealing its plans of launching an aggressive marketing and retail campaign in India, the company said that it intends to spend around $100 million as a part of its outreach investment. Further, the company also said that it intends to have company-operated as well as partner-owned exclusive stores, and plans to open 1,000 such outlets in the next 2-3 years.

Having a strong offline presence will help the company boost its expansion plans in India. Further, Jim Xu says that the company could also launch products in other categories such as personal computer and smart wearables, and could also look at manufacturing them locally.

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Huawei is currently the largest device maker in China, which is also the world’s largest market for smartphones. In 2017, the company accounted 153 million in global smartphone sales. Apart from China, its presence is also growing in Europe, where it accounts for over 20 percent in overall smartphone sales.

(Source)

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