India’s mobile phone production is expected to reach 107 mln units by 2011, mainly driven by the expanding domestic mobile subscriber base and favourable government policies promoting local electronics manufacturing, according to a research by Gartner.
Mobile phone production revenue is expected to reach 13.6 bln usd by 2011 from 4.9 bln usd in 2006, at a compound annual growth rate (CAGR) of 26.6 pct, the information technology research and advisory company said.
He added this would raise EMS vendors’ share of total mobile phone production in India to nearly 40 pct by 2011. Gartner said it expects as much as 30 pct of domestic mobile phone production to be exported to neighbouring regions that are also demanding low-cost handsets such as Africa, the Middle East and other parts of South Asia over the next five years, though it currently caters mainly to local demand.
Ramamoorthy cautioned that India faces a key challenge as it lacks a mature component supply base to support local mobile phone manufacturing.
India’s production of vital components for mobile phones is very limited because much of it is imported, he said.
He cautioned that this may not be viable in the long term and therefore, establishing a reliable component supply base will be vital for the Indian handset manufacturing industry to stay competitive in domestic and export markets.
–forbes
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