Huawei Gains Approval to Make Handsets in India

17 Jul

Chinese electronics maker Huawei has obtained a key approval from the Indian government, removing the hurdle to manufacture phones in India.

Huawei submitted the application in India 19 months ago. Unnamed Huawei executives revealed that the application has been approved and the company is still waiting for the approval document. Huawei, if successful, may become the first major Chinese company to manufacture smartphones in India.

Huawei has also established a R&D division in India, which will help improve its services to Indian customers.

Meanwhile, according to Leiphone.com, Xiaomi has already been producing smartphones in India. Its production part, however, is subcontracted to Foxconn’s subsidiary FIH Mobile. FIH Mobile has completed the production of the first batch of Xiaomi phones and will reportedly increase its capacity.

Compared to the slowing market in China, India’s smartphone market is still growing rapidly. There are approximately 975 million cell phone accounts in India, and 150 million users have imported smartphones. India is forecast to see a 26 percent compound annual growth in the number of smartphones in use in the country. Chinese manufacturers may be able to minimize the impact from the slowing domestic market by entering India.

(image credit: Leiphone.com)

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