Although the mobile market has grown only 3% overall in the last year, it is an economic ecosystem with growth forecasts thanks to emerging markets such as India, which in recent years has not only become one of the leading Countries of consumption, but also of production.
In this article, we are going to focus precisely on that, the production of devices, the origin of the devices and their components. We already said that few companies have their factory and many businesses that turn to suppliers of parts, all for one important purpose: to reduce production costs.
Smartphone manufacturing China is leading
No one should be surprised by this information because the name of the Asian giant has not stopped talking about the last few years when smartphone production has been talked about. Although this has not always been the case, as China was for many years in the dark regarding consumer electronics, major brands such as Apple or Samsung and they chose cheap labor. They bet on the country to manufacture their devices and components.
The brand’s locals like Huawei, Xiaomi, Oppo, OnePlus or Meizu, some of which are gaining unstoppable ground, focus almost 100% of their production in China. Also, some of the manufacturers of components for brands such as Apple or Samsung are also in the country that today still hangs the medal largest manufacturer of smartphones.
India treats his heels in manufacturing the smartphone
But China is beating very carefully its neighboring country, India, which in recent years is undergoing an extraordinary economic development. Xiaomi, Huawei or Motorola manufacture complete models in India and others like Samsung, HTC, ASUS, Microsoft or LG also acquire some components there.
India’s growth is unstoppable, and some major manufacturers like Fox conn will expand into it
But just as important is the growth India has suffered as it anticipates it will experience in the coming years. Some of the major manufacturers like Foxconn, the Taiwanese company that makes the iPhone, plans to create up to 10 factories in the country that will generate one million jobs.
Samsung and semiconductors
The Korean colossus has gone through a bad run that, against all the odds, has not affected as expected its financial results. The company closed the year 2016 with a positive balance, which was reinforced thanks to one of its most successful divisions: the semiconductor.
These elements, mainly screens, and chips, are manufactured by Samsung in factories located in their home country, Korea, but also has one of its largest plants Samsung Electronics in the United States, specifically in the city of Austin.
Samsung and TSMC are currently leaders in the manufacture of mobile SoC, although we also find GlobalFoundries (located in the United States) with clients such as AMD, Qualcomm or Broadcom and the Taiwanese United Microelectronics Corporation from which Mediatek started.
HTC and Sony: faithful to their countries of origin
While HTC manufactures quite a few components of its smartphones in India, almost the bulk of its production focuses on its home country, Taiwan. Another company based on the small island is ASUS, which chose it as a manufacturer of its super mid-range, Zenfone.
In the case of Sony, it focuses all its factories in Japan, and like Samsung has a well-established business with components for other manufacturers. In the event of the Japanese, it is about the sensors, line in which has invested a lot of money supported by the vast demand of other companies like Apple.
iPhone, the most scattered
To end this trip by the factories of smartphones and their components, it is worth talking about Apple and its decentralized iPhone. The Cupertino company does not have any factory and has all its subcontracted production. The leading manufacturers of iPhones are the Taiwanese with enterprises in China: Foxconn and Pegatron.
In addition to the two Koreas performing the bulk of the manufacturing and assembly, the company led by Tim Cook also has closed deals with the Taiwanese TSMC that manufactures the processors – since Samsung ceased doing so – or Catcher Technology that handles Of the external structure.
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