Smartphone makers may face tough time to get factories to work once lockdown ends in India
By MYBRANDBOOK
As per analysts, smartphone makers may find it difficult to restart their factories in full swing after 21-day lockdown as workers may return to their jobs slowly, especially in Northern part of India.
“We can see some problems in factories located in North India as many workers may leave jobs temporarily or may have gone to their villages. Basis of our discussions with some players, the problem will be less in the southern part of the country, as workers live nearby to their factories,” said Neil Shah, Vice President, Counterpoint Research, as per news source.
“Players like Foxconn, Flex and component players in the area would be better prepared. We foresee advantage to brands like Xiaomi that make their devices in Southern factories,” he added.
Xiaomi has eight factories for smartphones and SmartTVs which are situated in Southern states like Tamil Nadu and Andhra Pradesh. Its rivals Oppo, Vivo and Samsung have factories in Noida and Greater Noida, Uttar Pradesh. Oppo makes phones for Realme and OnePlus through its Greater Noida factory.
Apple too makes iPhones through Wistron and Foxconn that have facilities in the Southern part of the country.
Navkendar Singh, the research director at IDC also said that work resumption will take a few more weeks as people will be more cautious. “Noida factories might take time to resume.”
Singh, however, added that 100% capacity wouldn’t be aimed by manufacturers due to the unpredictability in the market.
ICEA Chairman Pankaj Mohindroo separately told the news source that the association is regularly asking its handset and contract manufacturer partners to keep in touch with their respective workers on a regular basis.
“It is observed that an overwhelming number of workers in one dipstick 99.7% of the workers could be contacted or reached,” he said.
Mohindroo further emphasised that the electronics manufacturing is already very disciplined and regimented, and there will be strict precautionary protocols can be established for factories.
“Best practices from China and Korea are being studied because they have been immensely successful in controlling the situation and bring their manufacturing to near normal rapidly,” he said, adding that the large manufacturers are immensely competent in India and will put better protocols for employees.
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