Gionee has announced that it will be joining hands with one of the world’s leading phone manufacturers Foxconn and Dixon to start the production in India. This announcement is concluded as part of the Make in India campaign, which has been flagged off to attract companies and help them setup manufacturing units in India.
Gionee is all set to invest $50 million across the next three years on manufacturing in India. Manufacturing will take place at Foxconn and Dixon technologies manufacturing facilities, which are based out of Delhi-NCR and Andhra Pradesh respectively. According to the new arrangements, Foxconn will manufacture the F Series and P Series of Gionee phones while Dixon will be manufacturing feature phones and some of the other chosen smartphones for Gionee. Cumulatively, the production facilities boast of a capacity of more than 1.2 Million handsets per month.
Gionee says that it will also increase its spends on the R&D team in India which will focuses on the software and the UI of the phones. The company also seems to be working hard to better their Amigo UI and customize it further for the Indian users. Make In India has been an effective campaign and it has attracted many smartphone manufacturers including Xiaomi, Panasonic, Foxconn and Lenovo to set up their production lines in India.
Arvind.R.Vohra, CEO & MD Gionee India expressed the company’s readiness to directly participate in the country’s economic growth. Foxconn has already announced $5-Billion investment in Maharashtra and has promised that it will be coming up with a total of 10-12 factories in India in the next decade or so.
These investments means that we will see more of a “Made in India” tag on the smartphones and this will also help several ancillary industries to flourish. The Indian Government doubled up the import costs for the electronic devices and this had a scintillating effect on the manufacturers. The increased import duties even thwarted the razor thin profit margins they have on phones. Indian markets are proving to be a treasure cove for manufacturers, thanks to the huge sales volume and the exponentially growing rate of smartphone adaption. India is in fact predicted to overtake the US and become the worlds second largest market by 2017.