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Samsung Follows Apple With $40B Phone Production Move To India

Samsung Electronics is reportedly preparing a US$40 billion move of its smartphone production facilities to India, replacing Vietnam after the company closed its last remaining Chinese factory last year.

According to The Economic Times, Samsung is moving a notable portion of its smartphone production to India in a five-year deal, with more expensive phones set to be exported to markets outside India.

Samsung is reportedly winding down phone production in South Korea amid higher labour costs. Its phones are also manufactured in countries such as Brazil and Indonesia.

The news comes as Apple also opts to move a significant portion of its smartphone production line to India, with the Indian-produced iPhone 11 handsets recently hitting retail stores.

Apple has sought to reduce reliance on Chinese vendors during strained US-China relations, with Samsung seemingly following suit. Both companies are also leveraging the Indian government’s Production Linked Incentive scheme.

According to Counterpoint Research, around 29% of Apple smartphone shipments in Q1Y20 in India were derived from domestic manufacturing, with around 400,000 units exported in the quarter to mostly European nations.

Reports suggest Apple has submitted estimates of producing smartphones in excess of US$40 billion over the next five years to the Indian government.

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