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The world’s largest mobile phone factory is set to open in India and Samsung is footing the bill

The Samsung factory in Noida will expand in the next two years to almost double its mobile phone manufacturing capabilities.

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Image: Samsung

Today, July 9, a factory on the outskirts of Delhi, India, became the world’s largest mobile phone factory. The Samsung factory in Noida will expand in the next two years to increase its mobile capability to 120 million units per year. It currently makes 68 million units a year, according to Bloomberg.

The new facility was recently inaugurated by India Prime Minister Narendra Modi and South Korean President Moon Jae-in. It’s part of Modi’s push to encourage overseas investors to “Make in India.” The factory will primarily produce low-end smartphones that cost under $100, although some Galaxy S9 models will also be manufactured there.

Asia’s third-largest economy has attracted record foreign direct investment in the past year totaling $62 billion, including reinvestment. India is now considered the world’s fastest-growing market. Besides Samsung, smartphone makers from Xiaomi Corp. to Oppo Mobiles also have a presence here.

According to Faisal Kawoosa, who heads new initiatives at researcher CMR Pvt, “The opportunity is just massive.”

With 1.2 billion people, India is the second most populated country in the world behind China. Despite this, only 425 million Indians own a smartphone.

In 2017, India surpassed the United States to become the world’s No. 2 smartphone market after China. There will be 780 million connected smartphones in 2021, compared with 359 million in 2016, according to a study by Cisco Systems.

The expansion of this factory is big news for Samsung, although it will take awhile before we see what it does for the company’s bottom line.

As Bloomberg concludes,

Indians favor low-end smartphones priced at $250 or less, given the low average annual income of its people, according to Bloomberg Intelligence. That’s one reason why Apple Inc. has struggled to gain market share in India, with most iPhone models priced beyond $500, according to a Bloomberg Intelligence report earlier this month.

What do you think about the upcoming phone factory and Samsung? Let us know your thoughts below. 

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