Huawei is planning to start production of smartphones for the
Indian market in its Chennai plant, helping it expand its presence in
the country to over 200 cities and 20,000 outlets, in three years.
Huawei right now has a presence in over 35 Indian cities , with 2,500
outlets across the country.
Currently, Huawei’s Chennai plant makes networking equipment, such as the recently introduced E355 data card with Wi-Fi hotspot support.
The company is reportedly doing quality testing and strengthening
logistics channels before it embarks on smartphone production.
Speaking to the Financial Chronicle,
Victor Shan, President of Huawei India’s device business department,
said: "Low-level feature phones are preferred in rural areas while
smartphones are preferred in tier I and tier II cities." Tier I cities
reportedly account for 60 percent of its smartphone sales.
According to Shan, the Indian market has
a large demand “smartphone look-alikes”, which are priced at less than
Rs. 10,000, yet offer form factors and features of smartphones. They
make up roughly 80% of Huawei’s mobile phone sales in the country.
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