Mobile Phone Production in India
According to new research by Gartner, mobile phone production in India is expected to grow from 31 million units in 2006 at a compound annual growth rate (CAGR) of 28.3 percent to reach 107 million units in 2011. Mobile phone production revenue is expected to reach US$13.6 billion by 2011 from US$ 4.9 billion in 2006, a CAGR of 26.6 percent.
The growth in production will be driven mainly by the expanding mobile subscriber base in India and favourable local government policies promoting local electronics manufacturing in India.
At present, mobile phone production in India is dominated by the top five global handset vendors; Nokia, Motorola, Samsung, Sony Ericsson and LG. There are very few local-brand mobile phone makers with low production volumes and are typically focused on low-end and mid-range handsets. However, Gartner expects new players–local as well as global–to enter the mobile phone manufacturing market in India, aided by the global electronics manufacturing services (EMS) providers’ present in India.
Though domestic mobile phone production currently caters mainly to local demand, over the next five years Gartner expects as much as 30 percent of production to be exported to neighbouring regions that are also demanding low-cost handsets such as Africa, the Middle East and other parts of South Asia.
