Dixon Signs Agreement With Samsung For Mobile Manufacturing

  • Samsung has stopped its mobile manufacturing operations in China
  • Dixon technologies has been associated with Samsung for home devices segment since last two years

Samsung has signed an agreement with Dixon Technologies in India. Under this agreement the latter will be responsible for manufacturing mobile feature phones.

“There is tremendous scope and potential in the feature phone market. We are confident that this relationship will go a long way,” shared Atul B Lall, MD, Dixon.

Dixon will be manufacturing Samsung feature phones at one of its new facilities in India. Spread over 2.24 lakh square feet, this facility is located in Noida, Uttar Pradesh. Dixon has around 10 manufacturing facilities in India. The company uses these to manufacture LED bulbs, air conditioners, washing machines, LED TVs along other consumer electronics.

File Photo – Dixon Team Welcoming Samsung Delegates

Samsung has stopped making mobile phones in China

Interestingly, Samsung has stopped making smartphones in China earlier this month. The company has been facing tough competition in terms of smartphones from new and old Chinese brands. As a matter of fact, the feature phone market in India is led by the likes of Reliance Jio. There are a number of India-based feature phone brands also available in India.

In contrast to the smartphone market, which contracted for the first time in 2018, the feature phone market has continued to grow over the last three years. Latest research from Counterpoint Research estimates that in 2019, a little more than 400 million feature phones will be sold globally. Further, feature phone shipments are expected to cross one billion units by 2021.

According to Peter Richardson, research director at Counterpoint Research, India and the Middle East Africa region will drive the growth of the global feature phone market by capturing nearly three-quarter of the market share in 2019.

“India and the Middle East Africa region will see cumulative shipments of around 800 million feature phones out of more than one billion global feature phone shipments over the next three years. Globally, the feature phone segment is forecast to generate around US$16 billion cumulatively in wholesale hardware revenues over the next three years,” shared Peter.

Dixon’s associated with Samsung home appliances from last two years

Dixon has been associated with Samsung’s home appliances business from last two years. In fact the company, not long ago had celebrated 100,000 unit production milestone for Samsung as well.

“Samsung is one of the most valuable technology brands in the world and a leading mobile phone brand as it has been constantly serving with innovative solutions to customers across all segments,” said Sunil Vachani, Executive Chairman of Dixon Technologies India Ltd.