Leading mobile phone vendors in India have doubled their imports of semi knocked down (SKD) mobile phone units into the country as local handset assembly takes off.
According to research firm Cybex Exim Solutions Samsung and Micromax together imported 6.9 mn SKD units into India during June 2014, more than twice the 3.4mn units they imported during the same month last year.
In the Apr-Jun quarter of this year, SKD imports grew by 64% y-o-y to 18.14 mn units. The report adds that majority of these devices were smartphones.
The move to increase assembly of devices in India was driven by the Government’s decision to change the import duty structure on smartphones, making it more economical to assemble devices in the country than import them.
Local assembly is being seen as the first step towards manufacturing smartphones in India, which is in-line with the government’s agenda to turn the country into a smartphone manufacturing hub.
Leading handset vendors Micromax, Samsung, Xiaomi, Lava, Intex, Sony, LG, HTC and Asus have all shown interest in manufacturing their devices in India. Even Foxconn, the company that manufactures the iPhone for Apple, plans to invest $2bn in the country for setting up 10-12 facilities by 2020.