Taking cue from what all the other smartphone OEMs are doing in India, Chinese smartphone maker Gionee has revealed its plans to start contract manufacturing of the company’s smartphones in the country. Many major smartphone companies including Samsung, LG, Xiaomi and Sony, have already announced their plans for setting up or expanding their existing manufacturing facilities in the country. With this attempt, Gionee also wants to take the advantage of manufacturing within the country. Hence, the company is planning to extend a contract of manufacturing its smartphones in the country.
Some online reports claim that the company is looking at contract manufacturing, which can helpthe company lower the prices of its smartphones. Manufacturing within the country will help company get rid of the 12 per cent duty that it has to pay for import; thus, resulting in a higher pricing of its devices.
It should be known that most of the smartphone companies in India, are contemplating manufacturing options in the country. This will help the Chinese smartphone maker to bring down the prices of its products. Reports claim that Gionee is in talks with three contract manufacturing companies in India including Global Devices Network and Foxconn Technology Group. The company will make the final decisions in about three weeks time, claimed a few reports. However, the actual production is likely to start by the end of the year. Gionee will reportedly invest three billion in the process of contract manufacturing of smartphones in the country. The company may think of establishing its own manufacturing unit in India at a later stage.