Chinese smartphone makers gained 72% share in India at 2020 Q1

Abhijeet Dey

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Chinese are net gainer because Indian population base is hooked on to cheap internet devices like phones. Too much sophistication of Apple or Samsung or Nokia are not highly appreciated, although these add to the prestige. The key is, how to replace all these Chinese devices with either locally designed and manufactured phones.

No Indian manufacturer has taken the initiative to design or build the smart phones. They too have given up to cheap Chinese devices.

Let us wait and see if Modi initiative to grab electronics companies exiting China succeeds. That will greatly help to kick start any local initiative.

Every smart phone of today will come up for replacement in usually three years. Indian initiative to build its own devices should be ready for that time period.
India's first indigenous microprocessor which can cater to civil and military needs (IIT Madras)

 

airtel

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India's first indigenous microprocessor which can cater to civil and military needs (IIT Madras)


This microprocessor is manufactured by TSMC ( Taiwan Semiconductor Manufacturing Company ) .
Indians did only
the programing & designing part .

TSMC is one of the biggest semiconductor manufacturing companies .

An even then this chip is based on older manufacturing process
 

Illusive

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We have to be realistic, people bought Chinese good not out of love for China, but it gave them products at cheap prices.

They sell at such a low price that the competitors can't sell, because they are not scared of loosing money.

They already are big at home which gives them the capital to burn in India. That's why they have been so successful.

Now also factor in this most of India is still a feature phone heavy market, so the growth potential is enormous.

The Chinese brands wants the 1st time smartphone buyers to have their brand products because they are affordable and also get people accustomed to their brand.

Plus a company can't just set up a manufacturing plant, the supply chain needs to exist.

The molding plastic buttons, the fabrication of plastic, the glass for cameras, screens, sensors, semiconductors etc.

This is a catch 22 situations, people will eventually forget and buy according to their "buying power", and our Industries can't rise till we have Chinese brands dominating our market.

The govt would have to step up its game and help set up the supply chain with which various companies can use to build their products in India.

Unfortunately most Indians likes to play the middle man business. Easy.
 

Abhijeet Dey

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WHY INDIA MAY SOON BOOST MANUFACTURING OF ELECTRONIC COMPONENTS & SEMICONDUCTORS


We know that the world has been depending on Asian regions like China and its neighbouring state Taiwan for a vast majority of the supply of electronics hardware manufacturing. With the coming of COVID-19 pandemic, the supply chains have been constrained, and many large nations are worried about the lack of electronics chips manufacturing. The US too has been considering building up factories within the domestic border and moving away from its dependence on Asia, according to reports.

If you look at India, the government attaches high priority to electronics hardware manufacturing as it is one of the fundamental tenets of programs such as Make in India. But there is clearly a dependence on other nations for semiconductor chips as there is a lack of electronic components manufacturing ecosystem in India. But, the government has recognised the development of the supply chain is critical for the manufacturing of electronic products with substantial domestic value creation.

Attracting Investments Into India’s Electronic Manufacturing

To attract investments in the space, the Modified Special Incentive Package Scheme (M-SIPS) was announced, give monetary incentives support to counterbalance the high upfront expenses in building electronic component manufacturing units, thereby attracting investments from interested companies.

This scheme was free to receive applications till 31 December 2018 for new projects and provided a subsidy for investments in capital expenses for setting up electronics manufacturing facilities. M-SIPS had, in fact, has played a decent role in promoting investments in electronics manufacturing in India so far.

Now, there is another program to boost investments in the electronic manufacturing sector. Known as Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) introduced in April 2020, the program is aimed to offer monetary stimulus of 25% of capital expenditure for the manufacturing of goods that form the supply chain of electronic goods.

The scheme will balance the lack for domestic manufacturing of components and semiconductors, and aims to grow the electronics manufacturing supply chain ecosystem in India. There are various classes of goods eligible for incentive under SPECS, ranging from a Minimum Investment Threshold Limit of INR 5 crore to Minimum Investment Threshold of INR 1000 crore, including semiconductor wafers and Semiconductor Integrated Chips (ICs).

With the newly announced era of Internet of Things (IoT), directing that the new generation of interconnected devices be capable of advanced computing, the Indian semiconductor industry is set for a solid rise with fresh prospects provided India’s infrastructure and funding issues for electronics chip manufacturing are met.

At the moment, almost all the semiconductor demand is satisfied by imports from nations like the USA, Japan, and Taiwan. In the semiconductor area, India has a large human-capital pool, which is focused on the design side, not manufacturing. Hopefully, this may change in the coming years.
 

Suryavanshi

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Unfortunately our government thinks just releasing funds is enough to establish a industry but that is not the case. If just releasing billions upon billions worked Ganga would have already been cleaned, the reality is even after releasing loads of fund Ganga isn't clean today. The situations of Industry isn't much difference.

Just assigning funds won't cut it, the gov must hold hand of the Industry at every step, just like a fathers holds his child's hand until he/she learns to walk by herself, at which point he no longer needs to be held.

I am no expert but here's what my Common sense and whatever little management and manufacturing control books I read said.

1) Lay out the plan.
Just like all good things the it all starts on a piece of paper where goals, dreams and aspirations are to be set.

2) Looking for the right people
Yes the people run the show and we will need a very experienced and motivated bunch to carry the torch in this Industry too. And I'm not talking about IAS, IES or bureaucrats, every good project is attached to these glorified clerks and they are the very reason for the failure of many projects. U need actually technocrats to do the job, peopel who have worked in FAB plant, who have researched in semiconductor field, CEOs and Industrialists who know what they are dealing with. Not some IAS, IES smuksh who has ruined his entire life to pass and exam that leads to no value in the industry he is made in charge of.

The Government must know to contact the right group of people

3) Scouting for Land.
The land is the most basic of the tangible things that re needed. Semiconductors FAB don't have a very particular requirement but a calm and a Water resource nearby is a very favorable deal. Places like Karnataka, Backdrops of Odisha, Maharastra and Chattiasgarh are perfect for it.

The Government must scout and attach lands to the industries and make sure the land are free from hassels so tomorrow Tribals don't show up and demand money.

4) Energy Source
Electronics Industry need some Major power and hence dedicated Power Generator and separate grids aren't that unheard of. The electronics industry will operate some very sensitive Machinery so uninterrupted power Supply is a must.

5) Raw Material
Now this is the most important part of the industry.
Most people will tell u that we make silicon ingots from sand but that is not true. Quartz is used in these industries. It is hard to make wafers from just sand because a high purity of SiO2 is needed and that is mostly provided by Quartz, sand is too impure and refining It will be too costly. China is the leading producer of Quartz.

So heres the thing, government will need to go look for quartz. We can source it from China Initially but we will need to diverse our supply chain soon enough, depending upon one country for supply is bad.
Myanmmar our Neighbor has decent Quartz reserve also Austalia and Chile, Africa has whole lots of it but unexplored.

6) Investment.
Now Indians aren't very prone to investing and a Electronics Industry may need some 100 million to 1 billion as Investment depending upon the type of product. Ask the Indian ventures to invest and assure them of profit. We have ONGC which has surplus amount, oils are going down so they must investment in electronics to change the pace. OOGC has already invested three billion in Battery industry.

7)Counter Taxation.
Bombard the Chinese Brands with Taxes while providing tax relaxation for Indigenous ones.


Just a few points there are more.
 

Abhijeet Dey

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India's electronics manufacturing can gain from China's loss, says Prasad


China's loss could be India’s gain in the ongoing pandemic, according to Minister of Electronics and Information Technology (MeitY) Ravi Shankar Prasad, who held a videoconference with state information technology (IT) ministers on Tuesday.

Prasad said India has the opportunity to promote electronics manufacturing and urged states to work towards attracting investments. As more and more manufacturers look to shift base from China, India’s recent electronics incentives could become an attraction for them.

India’s recently announced production linked incentive 2.0, electronics manufacturing clusters, and scheme for promotion of manufacturing of electronic components and semiconductors, are schemes with a project outlay of Rs 50,000 crore and seek to attract investments in electronics manufacturing sector.

In addition, the minister said the government would extend Department of Telecommunications’ (DoT’s) deadline on relaxation of norms for work from home from April 30 to July 31.

The DoT had given the nod to software services body National Association of Software and Services Companies (Nasscom) last month to allow IT unit employees, mostly from business process management firms, to work from home until April 30.

The issue dates back to a clause in the earlier telecom policy under which certain kinds of work (such as voice calls) cannot be shifted to employees’ residential premises. However, given the advent of technology, the Telecom Regulatory Authority of India had suggested doing away with the clause to allow work from home for business process outsourcing employees.

The government is also monitoring online media platforms’ compliance with the government’s call to remove and monitor fake news and misinformation. “My officers are monitoring it. The companies have said they have made good progress; they have removed many of the contents that were seeking to inflame passions and also roadblocks in the fight against Covid-19. If there is any digression, they’ll have to pay consequences, whether at central or state level, including police action,” he told reporters in a videoconference following the meeting.

In a meeting with state IT ministers, he said, “I reinforced teamwork, sharing the best practices of the Government of India and state governments, and therefore, my departments — National Informatics Centre and National e-Governance Division — will come up with an app in three-four days. I also suggested we have a strategic group of the central government, state governments, IT ministers, and some of the best minds from the IT profession, so that we can leverage ideas.”

The minister also outlined further plans for the government’s Covid-19 contact-tracing app Aarogya Setu. Prasad said the data from Aarogya Setu app should be made available online to states, right up to the district-level officials. He also announced an interactive voice recording system solution is being developed by the DoT and IIT-Madras for feature phone users, given that a substantial number of users still use feature phones in the country. The feature will be launched soon, added Prasad.

He also asked MeitY to explore the possibility of integrating a system for issuing ePass during lockdown with Aarogya Setu — a demand from a few states.
 

Abhijeet Dey

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Abhijeet Dey

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Semiconductor assembly majors plan to set up manufacturing units in India


Four top global companies in the assembly, testing, marking, and packaging (ATMP) business have had discussions with the government to set up their manufacturing units and develop export hubs to undertake outsourced semiconductor packaging and test services. The companies —Taiwanese majors ASE Technology Holding (with revenues of $11.87 billion), Powertech Technology Inc ($2.17 billion), and SPIL ($2.79 billion), and US-based Amkor Technology ($4.31 billion) — plan to take advantage of the incentive schemes recently announced by the government.
 

duhastmish

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Shame on my countrymen. :frusty:

Chinese are invading and people in India, especially the rich and the middle class are more interested in themselves rather than on national security. Pathetic!!!! :mad2:

View attachment 49626
Ye chinese phone Gareeb nange log buy karte hain. Stop blaming everything on middle class.
They have to pay school fees, fuel , taxes , registration cost , insurence , their food. Etc etc. Country leaders had their share of samsung they are left with only OnePlus.
 

BeEverVectorMan

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During 2005 when Chinese mobile came in India those were without imei tracking I tried to find it why those time samsung would cost 25000 and chinese mobile cost 2000 so when I opened both samsung and chinese mobile I came to know how simple yet copied technology by Chinese made an average Indian buyer who only dream about getting a big camera mobile too can cherish the same experience in 2000
One can say it was an invasion by chinese but it some how cherished the common Indian dream to have mobile with latest technology
When Rcom launched its phone at mere cost of 500 I thought they will go more beyond that but alas if someone had far sight and saw the simple yet effective technology of china then that void won't had been filled by new cheap technology from China
How Indian company lost strategic market to China in its home turf is itself a saddest part
 

Rajaraja Chola

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Shame on my countrymen. :frusty:

Chinese are invading and people in India, especially the rich and the middle class are more interested in themselves rather than on national security. Pathetic!!!! :mad2:

View attachment 49626
If the phones are manufactured in India then its fine. Even though I prefer not to use even Chinese companies, there has to be local alternative companies to match the competition. Companies like Micromax, Intex fleeced Indian customers by importing Chinese phones.
 

Kumata

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i Just moved deliberately from a chinese maker to Samsung...

there is a renewed push from govt and i am sure this will bear fruit sooner or later... personally, i am avoiding anything chinese till possible...

and those shaming indians should realise that they too are indians and most probably have contributed to this rise.....
 
Last edited:

Craigs

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1. Even if phones are assembled in India , we have to import most of the parts from China ....that causes trade deficit.
2 Jio is mainly a network provider ( like China mobile ) . .... It did not invest large amount of money in mobile manufacturing , because mobile manufacturing business is already over saturated and less profitable , lots of mobile manufacturers are now out of the market including , zte , gionee , lenevo , motorola , blackberry etc .
Jio is investigating it's resources in development of 5G technologies and e-commerce business .
3 . OnePlus can not take over iPhone's share in India because it is an Android phone ...it captured shares of other android phones like Samsung ....and some people are upgrading from Xiaomi/oppo to OnePlus .
Phone "parts" are not manufactured in China. Most of it comes form other south east asian countries. China only assembles. Maybe they manufacture cheap things like screws, gaskets, covers etc.
 

rockdog

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Phone "parts" are not manufactured in China. Most of it comes form other south east asian countries. China only assembles. Maybe they manufacture cheap things like screws, gaskets, covers etc.
I feel sorry for your lack of knowledge, not only technical, but also geographic...
Hong Kong, Taiwan, South Korea, Japan never be happy to be called as "south east asian" ...


Apple is buying more iPhone parts from certain countries

phonearena.com/news/Apples-supply-chain-grows-in-China-and-Hong-Kong_id114635

For the first time in Apple's history, the company has more suppliers in China and Hong Kong than in the U.S. and Japan. The Nikkei Asian Review put together a list of Apple's top 200 suppliers. While the 46 suppliers located in Taiwan heads the list, companies in mainland China and Hong Kong are next, making up 41 of the top 200 companies that Apple sources parts from.



Apple Lines Up Three New Screen Suppliers

forbes.com/sites/ewanspence/2019/07/22/apple-iphone-new-leak-rumor-display-upgrade-ugly-design-iphone-xs-max-iphone-xr-iphone-11/#5d989a62f211

Apple is expected to diversify the number of suppliers for the upcoming iPhone’s display, bringing the likes of LG and BOE into direct competition with Samsung for its iOS-powered smartphones.



Huawei's big rival to the iPhone 11 reportedly doesn't contain any American parts thanks to the US-China trade war


According to a report in the Wall Street Journal, the Chinese tech giant's Mate 30 smartphone contains precisely zero American parts. The discovery was made thanks to an analysis of the Mate 30 by UBS and Tokyo-based tech lab Fomalhaut Techno Solutions, which disassembled the phone.

-------------------------------------------------

Ten years of localizing the maufactures of iPhone made China grew lots of top level suppliers in the supply chain. 70% share in India dosen't mean Chinese brands can only make screws, gaskets, covers, but localize and minimize the cost for most important parts...

This is the trick made by the evil CCP government, at the peak year China sacrificed 80% of local profit went to Apple Inc to gain the tickets as suppliers.

Now 1st oversea Tesla factory gained huge sales in China and helped its stock value overtake Toyota. Elon Musk promised by 2020-2021, 95% parts will be localized by Chinese suppliers...
 
Last edited:

airtel

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I feel sorry for your lack of knowledge, not only technical, but also geographic...
Hong Kong, Taiwan, South Korea, Japan never be happy to be called as "south east asian" ...


Apple is buying more iPhone parts from certain countries

phonearena.com/news/Apples-supply-chain-grows-in-China-and-Hong-Kong_id114635

For the first time in Apple's history, the company has more suppliers in China and Hong Kong than in the U.S. and Japan. The Nikkei Asian Review put together a list of Apple's top 200 suppliers. While the 46 suppliers located in Taiwan heads the list, companies in mainland China and Hong Kong are next, making up 41 of the top 200 companies that Apple sources parts from.



Apple Lines Up Three New Screen Suppliers

forbes.com/sites/ewanspence/2019/07/22/apple-iphone-new-leak-rumor-display-upgrade-ugly-design-iphone-xs-max-iphone-xr-iphone-11/#5d989a62f211

Apple is expected to diversify the number of suppliers for the upcoming iPhone’s display, bringing the likes of LG and BOE into direct competition with Samsung for its iOS-powered smartphones.



Huawei's big rival to the iPhone 11 reportedly doesn't contain any American parts thanks to the US-China trade war


According to a report in the Wall Street Journal, the Chinese tech giant's Mate 30 smartphone contains precisely zero American parts. The discovery was made thanks to an analysis of the Mate 30 by UBS and Tokyo-based tech lab Fomalhaut Techno Solutions, which disassembled the phone.

-------------------------------------------------

Ten years of localizing the maufactures of iPhone made China grew lots of top level suppliers in the supply chain. 70% share in India dosen't mean Chinese brands can only make screws, gaskets, covers, but localize and minimize the cost for most important parts...

This is the trick made by the evil CCP government, at the peak year China sacrificed 80% of local profit went to Apple Inc to gain the tickets as suppliers.

Now 1st oversea Tesla factory gained huge sales in China and helped its stock value overtake Toyota. Elon Musk promised by 2020-2021, 95% parts will be localized by Chinese suppliers...
It is impossible that mate 10 doesn't contain any American technology .
May be the parts are manufacturered out of the USa but still those parts would be licensed production only .
Example = Huawei and all the Android smartphones are using chips based on Arm architecture which is a American/ British company .

Most of technologies used in mate 10 would be patented in Usa or friendly nations of USA like Taiwan , Korea , Britain etc .


Look what they did to Huawei's 5G.

Even after developing advanced 5g technology Huawei would not be able to export it outside china .
Apple is using Chinese parts because China is the 2nd biggest market for China ....so it is a good idea to use locally built components to reduce costs .
But all the critical technologies of apple are still secrets .....and even if Chinese get those technologies the can not make a brand like apple .
 

Flying Dagger

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Instead of shaming Indians for buying Chinese phones , blame Indian governments (past and present ) which didn't develop electronics industries in India .

People all over the world are buying. phonese manufactured in China because there is no other option as of now.
Tomorrow if jio develops some advanced 5G technologies in affordable price then nobody would use Huawei's products .
Jio supplies Chinese phone with their name tag . They don't even built feature phone here in India completely but merely assemble at most.

Truth is there is no brand which doesn't get it's part from global supplier and China lead there.

Another thing is Indians are buying lot of refurbished Apple iphones from the market and Blackberry for feature phones.

What we need is a buyout of a company like Lenova did with motorola and since then in last 6-7 years Chinese have been ruling market.

Nokia is operated by HMD so basically all are Chinese with screen camera and processor etc from different sources.

What we need is a ministry dedicated to build mobiles laptops etc in India. Despite being a failure and corruption saga of congress their idea to bring Aakash tablets was good.

Current gov lacks a sincere I&B minister . It's not just the hardware but even in softwares hina is ahead whether Android or windows.

I have seen many indian developers developing individual stuff then flooding it with ads In that regard Jio has done some good with its apps like Jio switch which is better than Shareit but not advertised properly.

Their browser jio chat and message app ( lack RCS for non jio) are good too just lack simplicity like Google products.

I think we could have atleast come up with a dedicated Linux based OS like chrome os or an android equivalent. This is something which needs to be done asap. The gov doesn't seems to show willingness or desire to take it on against Chinese apart from their third fourth string leader coming up with occassional china bashing.
 

Rajaraja Chola

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Jio supplies Chinese phone with their name tag . They don't even built feature phone here in India completely but merely assemble at most.

Truth is there is no brand which doesn't get it's part from global supplier and China lead there.

Another thing is Indians are buying lot of refurbished Apple iphones from the market and Blackberry for feature phones.

What we need is a buyout of a company like Lenova did with motorola and since then in last 6-7 years Chinese have been ruling market.

Nokia is operated by HMD so basically all are Chinese with screen camera and processor etc from different sources.

What we need is a ministry dedicated to build mobiles laptops etc in India. Despite being a failure and corruption saga of congress their idea to bring Aakash tablets was good.

Current gov lacks a sincere I&B minister . It's not just the hardware but even in softwares hina is ahead whether Android or windows.

I have seen many indian developers developing individual stuff then flooding it with ads In that regard Jio has done some good with its apps like Jio switch which is better than Shareit but not advertised properly.

Their browser jio chat and message app ( lack RCS for non jio) are good too just lack simplicity like Google products.

I think we could have atleast come up with a dedicated Linux based OS like chrome os or an android equivalent. This is something which needs to be done asap. The gov doesn't seems to show willingness or desire to take it on against Chinese apart from their third fourth string leader coming up with occassional china bashing and jargons

Mobile phones are not the end of the world damn it. People talk as if we import only mobiles from China. We import components, but there is a reason why most of electronics components get manufactured there. PlayStations, joysticks, medical devices, heavy industrial machinery, robots you name it, it's manufactured in China. The worst part is we still import even lots of mechanical components in China cos India doesn't produce some types of screws and bolts.
Cos it's cheaper. How did they achieve it? They didn't follow WTO rules and developed their industry at world's cost. The world was silent cos they needed those cheaper cost to make more money. 5-6 years back, one iPhone used to get 300-350$ profit for one high spec phone sold. Now it doesn't make much. Cos the price has increased whole competition too has increased. In this scenario they can't move 100% to India until unless some Indian companies pull up socks or force foreign component manufacturers into JV in India just like Chinese did.
 

Kumata

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Jio supplies Chinese phone with their name tag . They don't even built feature phone here in India completely but merely assemble at most.

Truth is there is no brand which doesn't get it's part from global supplier and China lead there.
Jio mobiles is a mix of vietnam and china.. all designed in india....

On their core network, they are running purely Samsung / Cisco / nokia equipment...they have no direct chinese exposure on core network... more over their network is software centric....
 

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