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Tuesday, 10 July 2018

Samsung is betting on India

Por Olivia Rosario Rodríguez

India is the next market that big technology companies are betting on. Even these days it is said that the region of Uttar Pradesh aims to compete with Shenzen, the Chinese city dedicated to the construction of mobile phones for the mobile market, considered 'the heart of the mobile era'.

The vast majority of smartphones that we use every day around the world are manufactured there, regardless of the brand in the city of Shenzen. However, the region of Uttar Pradesh, in India, has been challenging the Chinese city for a few days, because after a huge expansion, the factory that the Samsung company has on the outskirts of Delhi has become the largest factory in the country.

Before the expansion process, Samsung manufactured about 60 million telephones a year in that plant in the Asian country. The resizing of the site promises to double its capacity in a phased manner during the next two years, when it will produce about 10 million telephones per month.

At the plant, the Korean company will manufacture all types of models from low-end mobile phones to the most advanced models in its catalog, such as the Galaxy S9, its latest large mobile phone to date.

For years, India has imposed high import tariffs on electronic products manufactured outside its borders, something that is possible given that the nation is the next big territory for the expansion of the Smartphone, with a population exceeding 1,300 million inhabitants. Of these, only 30 percent have a device, constituting an enormous growth potential for telephone companies, whose sales in recent years have declined due to the saturation of Western markets.

Similarly, sales of smartphones in India grew by 14 percent last year, with approximately 125 million units sold. Currently, the Asian country has positioned itself as the second largest smartphone market on the planet, displacing the United States and only behind China.

Other companies such as Apple have invested large amounts of money in the creation of new factories within the country with the idea of obtaining part of this market. On the other hand, Samsung, who until last year led the classification of telephone companies in the region, was overtaken by the Chinese company Xiaomi, which during 2017 has made an incredible commercial deployment in India with phones at very low prices.