Foxconn has become the number one company in terms of Electronics Manufacturing Services (EMS) in India during 2018, according to Counterpoint’s India ODM-OEM survey. The market research firm said that EMS partners manufactured nearly half of India’s smartphone shipments in 2018.
EMS companies are basically fully functioning manufacturing service providers, which can do everything from procurement, supply chain management, semi-knocked down manufacturing to fully knocked down manufacturing. For example, Foxconn is the EMS company that handles manufacturing for the Apple iPhone.
According to the report, 82 per cent of Indian smartphone shipments were manufactured by the top three EMS companies, which include Foxconn, HiPad and Flextronics. Many Original Equipment Manufacturers (OEMs) to expand their production in India have also started partnering with a number of EMS. This according to Counterpoint will help OEMs produce mass volumes and reduce costs.
Due to the Make in India initiative, over 100 smartphone EMS have started manufacturing smartphones in India. Many of them have even started transitioning from “SKD” to “CKD” to save on import duties and increase localisation.
Due to the ongoing China-US trade war, many Chinese EMS players have started relocating some of the production to countries outside of China. India is showing huge potential as it has huge local demand and can also serve as an export hub for other regions.
Xiaomi, Realme, Huawei, Honor and Nokia were the biggest OEM partners of the top three EMS companies. Other key brands in the report include Samsung, Vivo and Oppo all of whom assemble their devices in-house.