According to the Wall Street Journal, Samsung Electronics said on Wednesday it would invest about $ 760 million to double its handset and refrigerator capacity in India, since the Indian market is critical to the world’s largest mobile phone maker.
Samsung’s factory in India is located in the Noida, which is on the outskirts of capital New Delhi. The plant’s expansion plan highlights the importance of the Indian market. In the Indian mobile phone market, Samsung not only to compete with Apple, but also to cope with a series of competition which come from the low-cost Chinese brands and India’s local mobile phone brands.
The new investment plan will help Samsung reduce production costs in India. At present the world only has few steady growth prospects of the mobile phone markets, and India is one of them.
India is expected to soon replace the United States as the world’s second largest smart phone market, only next to China. According to Counterpoint Technology Market Research, India’s smartphone shipments grew 18% last year, far exceeding the global growth rate of 3%.
Research firm International Data Corporation (IDC) data shows that Samsung’s smartphone, headquartered in South Korea’s Suwon, won the share of 24% with leading position in India market, Xiaomi and Lenovo following closely. Analysts estimate that Apple’s share of the smartphone market in India is only 3%, but this high-end smartphone manufacturers are increasingly concerned about India, the world’s second largest population country.