Microsoft is looking forward for manufacturing handsets in India as the government raised import duties on mobile phones, as per a report from the Economic Times. Nokia was once a leader in manufacturing feature phones in India.
“We’re evaluating that (local manufacturing) constantly in terms of what our local footprint is. There are some new regulations and tax duties, etc., about local manufacturing and certainly we’re looking at them to make sure that we remain competitive,”
said Chris Weber, corporate vice-president at Microsoft Mobile Device Sales, according to ET.
Microsoft which bought Nokia’s device business in a $7.5-billion deal in April last year, was unable to purchase Nokia’s phone manufacturing plant in Chennai due to a multi-crore rupee tax dispute that is still unresolved. The company wants to remain competitive in the fast-growing market, where it has begun rebranding stores.
Homegrown smartphone makers like Micromax, Lava and Karbonn along with global players like Xiaomi and Asus are ramping up their efforts for manufacturing in India. The report said that Microsoft will continue to push down prices, even in 4G LTE and 3G handset segments and will also re-enter the premium smartphone space in this calendar year.