- Samsung is reportedly moving a large portion of its smartphone manufacturing to India.
- It would make devices worth $40 billion in five years.
- This could lower Samsungâ€™s costs and help it compete with Apple, which is also setting up shop in India.
Samsung might move a significant chunk of its smartphone production to India, and that could affect your phone costs in addition to helping the companyâ€™s bottom line.
Economic Times sources (via SamMobile) claim Samsung is planning to move some of its production in Vietnam and other countries to India under the countryâ€™s Production Linked Incentive system, which rewards domestic manufacturing. It reportedly hopes to produce over $40 billion in devices (about Rs 3 trillion) in India over the next five years. Most of that value â€” about $25 billion â€” would come from phones priced over $200.
About half of Samsungâ€™s production is based in Vietnam, according to estimates.
The company didnâ€™t respond to anÂ ET request for comment.
Like Apple, which recently started making more iPhones in India, Samsung would have a clear economic incentive to shift its manufacturing. It would avoid a 20% import duty and could keep prices down for some of its phones in at least India. That could help Samsung fare better in a fiercely competitive Indian market.
It might also help Samsungâ€™s manufacturing make more economic sense as a whole. Samsung is believed to have 20% of the smartphone market in terms of sheer volume versus Appleâ€™s 14%, but just 22% of the value compared to Appleâ€™s 38% share. Reduced phone production costs wouldnâ€™t necessarily boost Samsungâ€™s value, but they could help it earn more with each phone.