Smartphone maker Vivo is investing in 5G as it explores the possibility of having not just mobile phones, but also other connected devices, such as watches and bands, working on the technology.
The company is working with global partners such as Qualcomm, Haier, TCL and Midea and its scope of work includes co-development of products and services.
“Vivo is working closely with industry leaders on a global level for 5G services and products. We will evaluate partnerships in the Indian market at a later stage,” Nipun Marya, Director, Brand Strategy, Vivo India, told he told BusinessLine.
Marya was here in the city for the launch of the company’s new mobile phone, Y95.
The Chinese smartphone makercompetes with the likes of Xiaomi, Samsung, Motorola Oppo, OnePlus and Apple in India. Its Indian operations continue to make losses.
“We are in investment mode in India. So it will take some time,” Marya said.
Vivo, sources say, is also exploring the possibility of having its component partners setting up units in India. This will help in local sourcing. Currently, Vivo is importing components from China.
The local sourcing of components, market sources say, will give consumer electronics companies the option to slash prices and also cut the go-to-market time. Xiaomi is said to be in talks with component partners on local sourcing. “We are yet to take a call on local sourcing of components and are closely monitoring the situation,” Marya said.
Vivo will invest ₹800 crore more in manufacturing in India. This is in addition to the ₹300 crore investment that the company made at its Greater Noida plant. The Greater Noida plant has an annual capacity to produce nearly 25 million units. All the Vivo phones available in India are manufactured from this plant.
“We have not yet decided whether the additional investment will be at Greater Noida or at any other location,” he said. The enhanced investment will boost Vivo’s growth in India. Having started its operations in 2014, the company is the second largest in terms of smartphone sales (in value terms), behind Samsung. Vivo India nearly doubled revenue to ₹11,000 crore for fiscal ended March 31, 2018 from ₹6,000 crore in the year before. – Business Line