Until recently China seemed the promised land for electronics manufacturers and especially mobile devices. Infrastructure and the cost of labor to China had become the absolute protagonist of the market, and all major mobile phone production focused these operations in this country.
The emergence of new import taxes by the Chinese government have now the situation which is not so advantageous, and this has caused arising increasingly popular alternatives. India has become the new benchmark for some companies, and Lenovo just phone production start there because the manufacturer Flex and its facility near Chennai.
India is the new China in the segment of smartphones
Amar Babu, president of Lenovo in India, told Bloomberg that it was the first time that Lenovo and Motorola now united after the acquisition of early 2014 – would share production facilities of their mobile devices, although the production lines will be different. According to Lenovo, these facilities have a production capacity of 6 million ** units per year **, which will be directed mainly to be sold in the Indian market.
Lenovo is not the first and probably not the last company that makes that decision. Foxconn, companies like Apple ally in the manufacture of smartphones, has also begun manufacturing some devices Xiaomi and OnePlus in factories in India, and has announced plans to implement no less than12 factories in this country. Indian Prime Minister Narendra Modi takes time trying to attract large manufacturers to their country, and that plan seems to be working.
One reason for this change in Lenovo could be the latest results of the company: China accounts for 59% of sales of Lenovo mobile worldwide, but in the last quarter both Lenovo Lenovo as the sum of Motorola have had a fall in their market share in that country. But things are promising in India , where the units distributed grew overall by 44% in the second quarter according to IDC.
Lenovo, Xiaomi, Huawei and Gionee have managed to attract between four and 12% of that market, and it seems that the intention is to go to more and promote the message that not only sold in India but also manufactured there . As explained Kiranjeet Kaur, one of the leaders of the IDC study, “The slowdown in China has caused many manufacturers in this country are targeting India as the next big growth market for smartphones . “