Marbridge Daily

<- January 08, 2010 ->

Shenzhen Handset Manufacturers to Move to India

Southern Daily, 1/08/10

According to Tang Ruijin, secretary-general of the Shenzhen Mobile Communications Association, the Association is currently in talks with the Federation of Indian Chambers of Commerce and Industry (FICCI), an investor, and dozens of retailers in Mumbai and Calcutta, and has already reached a preliminary agreement to develop handset production in India. The Association will bring together cooperation partners from India and more than 20 mobile phone manufacturers from Shenzhen, to invest a total of approximately RMB 10 mln to build 15 handset production lines in India, with an initial annual production volume of 3 mln handsets.

Faced with a flagging handset market under the global recession, along with import penalties imposed on Shenzhen-made handsets from other countries, the move to India presents an opportunity for Shenzhen handset vendors to expand to other markets.

Since 2009, knock-off Chinese handsets without IMEI numbers have been banned in various countries including Pakistan, India, and Spain. Overseas sales of Chinese knock-off handsets have fallen approximately 50% over the last two months. In addition, countries including India and Libya have begun imposing penalty fees on Chinese manufacturers.

Editor's Note: For more background on this topic, please see "India Boycotts Chinese Knock-Off Handsets" MD 12/02/09 issue.

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