Flextronics, Foxconn And Samsung Account For Half Of India’s Mobile Manufacturing

Though India has set up more than 150 mobile manufacturing units in the country in the last four years, three firms – Flextronics, Foxconn and Samsung – account for more than 50% of the country’s local production, a report says.

The report prepared by CMR says Flextronics, Samsung and Rising Stars Mobile were the top three ODMs in India, accounting for more than 50% market share.

Rising Stars Mobile is Foxconn subsidiary in India and manufactures phones for Asus, Gionee, InFocus, Oppo and Xiaomi.

Commenting on the major trends witnessed in the mobile manufacturing in India, Narinder Kumar, Lead Analyst-IIG, CMR said, “SMT manufacturing in India is currently smartphone-centric. There is a clear momentum with all top five major smartphone players, including the likes of Xiaomi, OPPO and VIVO ramping up their SMT capacities. When it comes to Indian players, its only Lava that’s showing promise.”

The report said that the share of Completely Knocked Down (CKD) manufacturing increased by 43% from Q1 to Q4 2018, to end at 57%. On the other hand, Semi Knocked Down (SKD) manufacturing declined by half from 61% in Q1 2018, ending at around 38% in Q4 2018.

In CY2018, as a result of SMT manufacturing, there was a 20% YoY decline in approximate number of SKUs. In comparison, there was a mere 7% sequential decline in SKUs in CY2017, CMR added.

CMR believes that in CY2019, SMT manufacturing will see more uptake in featurephone segment.

“Beyond the likes of Samsung and Lava, we anticipate the entry of other major featurephone players into SMT Manufacturing,” added Narinder.

Predicting about the overall dynamics of Indian mobile phone industry, the consulting and research firm said India is expected to ship 345 million phones in 2019 with smartphones growing at 10-15% YoY, while 2G featurephones are anticipated to decline by around 12-15% YoY.

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