Electronics

It was reported on May 30 that Samsung plans to withdraw from the Indian functional mobile phone market to focus on the smart phone business, which may affect the OEM Dixon technology.

It is reported that Samsung has informed its channel partners that they will withdraw from the functional mobile phone business in India in the coming months or before the end of the year, and added that Dixon will produce the last batch of devices in December this year. It is reported that Samsung is one of the applicants of India's production related incentive (PLI) program, and it must produce mobile phones with an ex factory price higher than 15000 rupees (US $200) to be eligible for subsidies. Therefore, Samsung outsourced the manufacturing of cheap mobile phones to Dixon.

The report pointed out that another reason for Samsung's withdrawal from the Indian functional mobile phone market may be the decline of its market share. According to the data of counterpoint research, a market research agency, due to the weak consumer demand caused by supply problems, high inventory levels and inflation, the shipment of functional mobile phones in India fell by 39% year-on-year in the first quarter of 2022, and Samsung, which has always been the market leader, fell to the third place with a 12% share.