India Expected To Produce Over 100 Million Cell Phones By 2011

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One country that is seeing significant changes due to the manufacturing of cell phones is India.

A recent article from the Business Standard predicts that by the year 2011 over 107 million mobile handsets will be manufactured in India.

Ganesh Ramamoorthy, principal research analyst, Gartner says: “Existing global handset vendors as well as new entrants will outsource their production to EMS vendors to reduce ‘time to market’ and achieve faster penetration for their own branded handsets. This will raise EMS vendors’ share of total mobile phone production in India to nearly 40% by 2011.”

Though domestic mobile phone production currently caters mainly to local demand, over the next five years Gartner expects as much as 30% of production to be exported to neighboring regions that are also demanding low-cost handsets such as Africa, the Middle East and other parts of South Asia.

Currently Nokia, Motorola, Samsung, Sony Ericsson and LG dominate the mobile phone production there. They are expecting smaller companies to become interested in manufacturing
lower end phones in the area.

What do you think this means for the area?

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