Manufacturing giant Foxconn, owner of HMD’s partner FIH Mobile, increased its manufacturing capabilities in India by including the assembly of printed circuit boards (PCBs). India plans to raise duties on smartphones and imported PCBs, which will negatively affect vendors that import their devices to India.
HMD Global, via its partner FIH Mobile, manufactures all devices they sell in India locally. Foxconn acquired machinery for surface mounting on PCBs from closed Nokia factory in Sriperumbudur. Foxconn is also in talks with Nokia and Tamil Nadu government to acquire the Chennai plant which is under blockade because of the tax dispute between Nokia and the authorities.
In 2017, FIH Mobile doubled its revenue to about 12 billion dollars, with a loss of almost half a billion dollars. The loss was attributed to higher investments in partnerships and lower margins.
Local manufacturing will allow Nokia Mobile to offer devices at a constant price point, or in other words, that won’t be affected by customs duty. That will allow competitive pricing, as we saw with the Nokia 1, for example.