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Samsung Electronics Co., a South Korean manufacturer of Galaxy phones, announced the opening of the world's largest production center for mobile phones on the outskirts of the capital, the # 39; India. The factory was opened on July 9 by Indian Prime Minister Narendra Modi and South Korea's President Moon Jae-in. The two leaders visit the property owned by New Delhi, according to a statement from the Indian Ministry of Foreign Affairs.
"The opportunities are huge," said Faisal Kawoosa, who leads new initiatives in CMR Pvt. "This huge installation will help Samsung to meet the huge demand in the country of 1.3 billion people with 425 million smartphone users ." Since taking office in 2014, Modi has pushed its "Make in India" initiative, which encourages companies to open factories in India, to lead the nation to domestic production. Last year, India attracted the largest number of foreign direct investment (19459003) for a total of 62 billion dollars.
The Indian smartphone market grew by 14% with a total delivery of 124 million units in 2017. year, which is the fastest growth of the top 20 markets, according to International Data Corp .. Demand for new handsets increases in India, supported by billionaire Mukesh Ambani's bid – $ 23 4G phones, free voice services and inexpensive databases. The Chinese smartphone maker Xiaomi Corp announced in April that it was going to open three more factories in India.
The production capacity of the new Samsung plant will be 120 million smartphones each year, cheap smartphones, which cost less than $ 100 to the S9 model, according to the company. Indians prefer cheap smartphones priced at $ 250 or less, given the average annual low income of their population. This is one of the reasons why Apple Inc. is struggling to increase its market share in India because most iPhone models are worth more than $ 500. Last year, India took over from the US position and became the world's second largest smartphone market behind China. By 2021, there will be 780 million connected smartphones against 359 million in 2016, according to a Cisco Systems study.
Source: Bloomberg
