India, the world's second-biggest smartphone market and home to more than a billion wireless subscribers, is a big opportunity for Samsung where sluggish smartphone earnings growth has fuelled concerns that its mobile business is running out of ideas to underpin sales of its premium Galaxy devices.
South Korean conglomerate Samsung Electronics Monday inaugurated what it said is the world's largest mobile factory that will have a capacity of 120 million handsets a year - almost double the current 68 million - under a phased expansion by 2020.
Moon said that India and South Korea have developed bilateral relations in various fields for the last 45 years and in 2015, the two countries escalated it to a "special strategic partnership" when Modi visited Seoul.
"India is now second in terms of phone manufacturing". Out of a population of 1.3 billion, India has now only 425 million smartphone users.
"It's a move that'll obviously play well for Samsung but it also gives a much-needed shot in the arm to India's mobile manufacturing ecosystem as it will push rivals to consider expanding local production", said Navkendar Singh, an associate research director at International Data Corporation. It is also when the company aims to export 30 percent of the smartphones manufactured in India, Samsung told BGR India.
Samsung now has over 10% of its overall production in India, which it aims to take to 50% over the next three years.More news: Prince William congratulates England on qualifying for semi-finals
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"Today is an important day in making India a manufacturing hub".
South Korean President Moon Jae-in on Monday said he was committed to raising South Korea's relations with India to the level of those with China, Japan, Russia and the U.S., as he sought to expand cooperation in areas such as shipbuilding, aerospace, manufacture of medical devices and food processing. During 2017, the South Korean company shipped 317 million phones in total.
"India is a country that has no sensitive issues with us historically or geopolitically, so has little risk of its economic cooperation wavering due to external factors".
Political pundits have already described this inauguration by PM Modi has a major political score, as this can be showcased as the flawless implementation of #DigitalIndia and #MakeInIndia vision.
Thereafter, the two leaders took a ride on the Delhi Metro to visit the new Samsung facility in Noida. The smartphone market remained flat year-on-year, according to Counterpoint.
Samsung, a world leader in smartphone market, has been associated with the lives of millions of Indians, the Prime Minister said, adding that there is hardly any middle-class family in India who doesn't own a Samsung product. We "Make in India", "Make for India" and now, we will "Make for the World". Apart from Noida, Samsung also has a factory in Sriperumbudur, near Chennai, five research and development centres and one design centre along with 1.5 lakh retail outlets and 3,000 customer service points.