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Electronics Production | July 20, 2007

Timing is right in India for Salcomp

Finland based EMS provider Salcomp plant in India started to fully operate in June this year. The company feel that the India plant is important for the company. Salcomp largest customers such as Nokia and Motorola already has plants in the country and other major players will follow.
Approximately 1.1 billion new mobile phones will be sold globally this year. Forecasts indicate that the charger market will grow by over 100 million units when compared
to 2006.

This gives us a clear sign that our project in India has been timed exactly right. The new factory is being built at full speed. India is the fastest growing market and we need the extra capacity, says Markku Hangasjärvi, Salcomp's President and CEO.

Nokia and Motorola, both customers of Salcomp, have started production in India, Nokia in 2005 and Motorola this year. Other leading manufacturers are expected to follow suit and production in India will increase.

We want to be present in the markets where the mobile phone production volumes are largest.
Operating near our customers creates flexibility and cuts delivery times

The majority of mobile phone sales are in the so called economy models or the lowest price segment products. Price competition is toughest in the simplest types of chargers.

Cheaper prices are offset by gaining volume in the growing market. The aim is to make the
Indian factory the most efficient charger factory in the world, says Hangasjärvi.

Ever-increasing environmental requirements are also playing a part in the cost-structure for
chargers. These environmental questions include requirements from both authorities and
customers, says Markku Saarikannas, Salcomp´s Vice President, Strategic Planning.

The top five mobile handset manufacturers are Nokia, Motorola, Samsung, Sony Ericsson and LG. They enjoy an almost 90 percent share of the mobile phone market. The Taiwanese BenQ's market share has diminished somewhat and it is now sixth.

Salcomp's share in the charger market has grown to 23 percent. The forecasts are indicating that Salcomp's market share is only going to grow this year.

This is a clear indication that our strategy to stick to partnering with the largest manufacturers was the right thing to do, says Hangasjärvi.

As the mobile market grows, there is plenty to do. The competition is tough though. Salcomp's main customers are those who have over five percent market share in
the mobile phone business. In the future Salcomp is also going for the small and medium size mobile phone manufacturers

Over 95 percent of Salcomp's chargers will go into the mobile phone segment. The charger business is wider though and Salcomp is looking into new areas although
the mobile phone market will bather main arena.

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