It’s hard not to watch Apple invade the second-largest smartphone market in the world and not feel like Samsung blew an opportunity. Four months after Apple announced big plans for India, comes the news that Samsung is investing $760 million in India. The investment will help the smartphone maker ramp up its handset production to hold on to its 50% share in India’s smartphone market.
Samsung invests $760 million to double its production at its plant in Noida, India. This plant would also carry out shipments to Africa, Europe, Middle East and elsewhere.
Samsung Invests in India as part of Make in India Campaign
Following Apple’s decision, Samsung is also eyeing the Indian market and aims to manufacture smartphones locally. After months of negotiations with the Modi government, Apple finally decided to set up its manufacturing plant in Bangalore. The manufacturing facility will be run by Taiwanese contract company Wistron. In May, Apple began the shipment of a small number of iPhone SE handsets that are being manufactured at the facility.
Samsung’s investment in India will reaffirm its commitment to Make in India and to the state of Uttar Pradesh. Samsung’s Noida plant is the smartphone market’s first two manufacturing units in India and was set up way back in 1996.
Samsung and Apple are going toe-to-toe as number one in India’s premium smartphone market. Apple will gain its top position with a 56 percent share, down from 62 percent before. On the other hand, Samsung’s market share has increased to 40 percent from 31 percent. All hopes now rest on the launch of the Galaxy S8 which will help the company topple Apple.
Samsung has enjoyed its position as a popular electronics brand in the Indian market. While it still enjoys a favorable position, its foothold is less compared to the growing competition from Chinese companies.
Chinese smartphone makers such as Lenovo, Vivo, Oppo and Xiaomi now enjoy a combined market share of 51.4 percent in the Indian market.
Samsung, Apple and a Plethora of Chinese Brands
According to the date released by International Data Corporation (IDC) Samsung continues to enjoy the larger market share of 28.1 percent in India in Q1 2017. Exciting new launches with J2 series additions, C9 and A-series have cumulatively contributed over a million units. Although, Chinese smartphone Redmi Note 4 toppled Samsung Galaxy J2 as the highest selling smartphone in Q4 2016.
Recently, Samsung also launched service vans in India to provide timely customer service support in rural areas. The service vans will now expand its network to over 3,000 service points across the country.