The uninterrupted
Smartphone growth in India coupled with "Make in Initiative" launched
by Government of India with many tax riders raised eyebrows of established
Smartphone player as well as contract manufacturer.
Foxconnoffers 2.5 Mn handset manufacturing per month capacity with more than 25
assembly lines and in the process of adding 10 more lines. The Client list of
Foxconn include Microsoft, Xiaomi, Oppo, Gionee, Asus and
American brand Infocus
Optiemus
Infracom which owns Zen Mobiles along with Taiwan-based OEM Wistron Corporation
will commission its first factory by march 2016. It will have 16 Smartphone
assembly line with installed Smartphone manufacturing capacity of 1.5 Mn per
month.
Karbonn
Mobile also jumped into manufacturing space by collaborating with VSUN and came
out with 22 Smartphone assembly line with the monthly manufacturing capacity of
2.5 Mn per month. Karbonn Mobile made its intention clear that they will be
investing multi million Dollars in due course to be the leader in the space .Intex
investment in Greater Noida to expand its manufacturing capacity to speed up Go
to market time of their devices or accessories in order to reduce the cycle
time. Lava also earmarked multimillion Dollar to expand their manufacturing
plant to fulfill their Smartphone device segment requirement as well as act as
ODM for other OEM's willing to tap Indian market,
Micromax
already started manufacturing mobile phones at its Rudraprayag facility inUttarakhand. Lenovo, one of the fastest growing brands is already procuring
Smartphone through its contract manufacturer Flextronics. Other Smartphone
player like Celkon, Spice and Videocon already manufacture their own Smartphone.
India number one Smartphone player already manufacture their device in their
one of the plant located in Noida. Last but most importantly, there are 100's
of other manufacturers who entered into the segment with small number of
assembly line in order to tap unbranded mobile handset player by offer them
price benefits.
If
we calculate the total capacity already in the market place then it is higher
than total expected consumptions in Indian market place. Many of the Smartphone
players are also using India as Manufacturing hub to export their Device to
other countries such as CIS or Africa where they see huge potential. It is
expected that more and more capacity will be added in due course. It is a known
fact that replacement cycle in India is 2 years and over capacity may lead to a
scenario where contract manufacturing price war start very soon which will dent
in RoI of above mentioned players.
