Samsung to build $500m smartphone display plant in India
NEW DELHI, NNA – Samsung Electronics Co. is investing $500 million to build its first smartphone display factory in India to strengthen its footing after a price war with Chinese rivals had dampened profits.
The global smartphone arm of South Korean technology giant plans to start the plant adjacent to its existing smartphone factory in Noida on the outskirts of New Delhi, Tech Crunch reported Monday.In 2018, Samsung built the huge Noida plant to the tune of $700 million.
The neighboring new plant will produce smartphone displays and a wide range of other electronic devices. The local production of these components for its smartphones will bring down its production costs as it competes with Chinese smartphone rivals such as Xiaomi, Vivo and Realme in the huge Indian market.
Samsung India also stands to benefit from the Indian government’s tax privileges under the "Make in India" incentive scheme to attract investments to India.
Samsung India is currently undertaking multiple initiatives to boost profit which declined three-fifths in the past two fiscal years due to the price war it entered with Chinese companies like Xiaomi, OnePlus, Oppo and Realme in smartphones and televisions, according to the Economic Times.
In the Indian smartphone market, Samsung held a 20 percent share in the July-September quarter of 2019, lagging behind Xiaomi which led at 26 percent, according to Counterpoint Technology Market Research Ltd., a global research firm.
Vivo achieved its highest ever market share at 17 percent, just by a whisker of Realme behind at 16 percent. The latter also recorded its biggest ever shipment during the same period.
India is the third largest smartphone market in the world after China and the United States.