Monday, May 02, 2005

Chinese Handset Giants Are Dialing Up India

From BusinessWeek: Why Handset Giants Are Dialing Up India

" (...) Chinese manufacturers like India. ZTE Corp. is priming a unit to make mobile phones and DSL modems near Delhi, while rival Huawei Technologies Co. is awaiting approval from New Delhi for what industry insiders say will be a plant to manufacture handsets and other gear. Haier Group and Ningbo Bird Co. are also looking for an entry into the market. Using India as an export base is especially beneficial for Chinese companies, who can save 5% to 10% on shipping. "From China's perspective, servicing Europe or Africa from India is great as it is halfway there," says Vinnie Mehta, executive director of the Manufacturers' Association of Information Technology, an industry group."

"India's telecom manufacturing industry is still nascent; the numbers are tiny compared with China. Mainland factories are expected to make more than 100 million cell phones this year, vs. fewer than 2 million in India. But with India just starting up a steep cellular growth curve, telecom manufacturers are ready to tap into the potential -- even if it means sweating in the midday sun."

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