India is gaining ground in the smartphone industry. Apple has for years taken steps to move a large part of its production to the new most populous country on the planet, a trend that could add Samsung. To do this, you need to both promote an unknown player to many who can play a key role in the industry: Navitasys.
If you are an iPhone or Galaxy user, it is possible that your next mobile phone will be ‘made in India’.
Apple and a $40 billion target
The movements of big tech betting fully on India is part of a strategy drawn up in 2016, where the sale of iPhone in the country they were insufficient. Seven years later, it is already one of the five largest markets for Apple’s flagship product (in 2021 it was outside the Top-10), the result of a series of decisions to bring production and sales closer to its territory.
In recent months, Apple opened its first two stores in India, specifically in New Delhi y Bombay. Besides the big tech already producing 7% of its smartphone production in the country, which translates into a value of USD 7,000 million.
But its goal is much more ambitious. According to JP Morgan, Apple could manufacture one in four smartphones in India by 2025. Applesfera estimates the horizon to be worth US$40,000 million annually.
Driven by this plan, Apple achieved record numbers in India: 4% of its global iPhone sales in the second quarter of this year took place there.
In this way, in addition to consolidating itself in a booming market (according to Markets and Markets, it indicates that the 5G mobile phone market in India will grow at an average annual rate of close to 44% until 20231), Apple is moving away from China in a scenario of geopolitical instability. Logically, big tech has allies in India; among them Navitasys appears.
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Samsung and its new ‘partner’
Samsung is starting to take a similar path. In an unpredictable global scenario, the South Korean company is preparing a strategy that includes diversifying its supply chain.
Until now, according to La Vanguardia, Samsung had battery suppliers in Vietnam, China and India. Now double its presence in the most populated country in the world with a new supplier; again, Navitasys. The agreement is focused on the new Samsung Galaxy S24.
At the moment, the bet is not as decisive as Apple’s, but the move could pursue one of these two goals:
- Increase production capacity given the success of the Samsung Galaxy S23.
- Strengthen the network in India with a view to taking part in production in the future and joining ‘made in India’.
What is Navitasys?
The move towards India means, for Apple and Samsung, finding allies in the country. A role in which Navitasys stands out strongly.
Founded in 2019, Navitasys has continued to evolve to become one of the fastest growing companies in one of the most powerful economies on the planet. It is part of the Japanese company TDKand its business verticals include manufacturing batteries for mobile phones, electric cars, circuits and power banks.
Only four years old, the deals with Apple and Samsung make this still largely unknown new company a key player in the smartphone market. So from our daily life.
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