Asia > Eastern Asia > China > How China’s Huawei Hopes to Increase Its Smartphone Presence in India

China: How China’s Huawei Hopes to Increase Its Smartphone Presence in India

2016/09/29

The world’s third-largest smartphone maker by shipments—behind Samsung Electronics Co. and Apple Inc.—said Friday that it will work with the Indian arm of contract manufacturer Flex International Ltd. to assemble smartphones for the local market starting next month.

Huawei Technologies Co. is making a renewed push into India’s fast-growing smartphone market, manufacturing locally and broadening its distribution network.

By the end of next year, the plant in Chennai will have the capacity to make 3 million phones annually, Huawei said. The Chinese technology giant is also expanding its distribution network in India by teaming up with more than 50,000 retail outlets by the end of this year.

“We’ll keep looking for opportunities to increase our presence here,” Jay Chen, the head of Huawei India, said in a statement.

For years Huawei has proceeded cautiously in India, where intense price competition pressured smartphone margins. But now Indian consumers are starting to look for more advanced features rather than just bargains, boosting demand for midrange models. As the global market becomes increasingly saturated, the world’s second-most-populous country is attracting smartphone companies from Apple to low-cost Chinese makers.

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