Smartphone manufacturers have been doubling down on their “Make in India” initiative in the current times. Along with Xiaomi and Oppo, Samsung also manufactures its phones locally at its Noida plant to get more tax relief. In fact, the cheaper labour costs here is making Samsung consider moving more of its manufacturing to India. Based on reports, the company may shift its manufacturing base from Vietnam in pursuit of cheaper labour charges.

According to a report from The Economic Times, Samsung is planning to shift a major part of its manufacturing from Vietnam a few other countries to India. Samsung plans to manufacture devices worth over $40 billion in the country, said sources close the publication. “Samsung is likely to diversify its production lines for making smartphones to India under the PLI (Production Linked Incentive) scheme and this will have an impact in its existing capabilities across various countries like Vietnam.”

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If this happens, it will be a big move on Samsung’s part to create more jobs in India. Samsung currently has its largest manufacturing plant in Noida, where it makes all the phones it sells in India. The added capacity for its India operations will see the company develop its exports to its global markets. Labour costs in India are among the lowest and Samsung is willing to avail the most out of it.

The local manufacturing helps Samsung attain competitive prices for its premium phones in India. For example, the Galaxy S20 series came in India at a much lower price than its American variants. However, the Indian variant lacked support for 5G networks and relies on the Exynos 990 chipset instead of the Qualcomm variant. Samsung also unveiled the Note 20 series in India lately just after a couple of affordable Galaxy M series smartphones.

Samsung isn’t alone

Samsung’s biggest rival from Cupertino is also planning to shift some of its manufacturing to India via its contractors. Reports have been clear of Apple moving its manufacturing from China to India. Apple’s contract manufacturers, namely Wistron, Pegatron and Foxconn, are planning to shift bases soon. The local manufacturing could help Apple reducing the costs of its premium smartphones. Currently, Apple manufacturers the iPhone 11 in India and that has yet to reduce the prices.

 

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