In the face of the strong challenges of Chinese smartphone manufacturers. India’s second largest local mobile phone manufacturer Intex is planning to OEM. For Chinese mobile phone brands in order to achieve profitability.
According to Intex director Keshav Bansal, some Chinese smartphone makers are already negotiating with the company. To discuss foundry work in the Indian market. Bansal believes that OEM for Chinese mobile phone manufacturers will be one of the key strategies to revitalize the company.
In the past few years, Intex has been hit hard by Chinese brands. Such as Xiaomi, OPPO, vivo and Realme in the Indian smartphone market.
In fiscal 2016, Intex revenue was Rs 62.33 crore. However, due to the strong challenges of Chinese mobile phone brands, Intex’s revenue has decline year after year. In fiscal 2018-2019, Intex’s revenue was only one-third of fiscal 2017. In the previous fiscal year, Intex had a net loss of Rs. 2,813 crore.
In addition to Intex, another leading Indian mobile phone brand is also negotiating with Chinese mobile phone brands to discuss mobile phone foundry issues. The executive said that Chinese companies are only considering working with manufacturers that have manufacturing plants in India.
The executive said: “In terms of scale and speed, it is difficult for us to compete with Chinese brands. In terms of assembly costs, we also cannot compete in China”.
In May this year,according to the reports, following Karbonn, Intex phones also began to disappear from the retail shelves. Because it’s difficult to maintain operations in this market increasingly dominated by Chinese smartphone manufacturers.
In this way, among the four major domestic mobile phone manufacturers in India. Only Micromax and Lava companies are left, but the operating health of these two companies is also very poor.