Microsoft wishes to establish its manufacturing plants in India amid increase on import taxes.
Microsoft Corporation is considering various possibilities regarding establishing its own manufacturing plant in the Indian market since the local government has been making trade fairly difficult in the region. According to officials, the company finds it extends out of budget to import smartphones. The company understands the potential of the Indian smartphone market that is growing on a fast pace.
MSFT has taken several moves to rebrand itself in the region after it acquired the business of Nokia."We're evaluating that (local manufacturing) constantly in terms of what our local footprint is.”
According to Weber, "We continue evaluating that across the globe, including India while he highlighted the company’s future plans and endeavors. Microsoft has the honor of being the largest software provider across the globe which initially acquired Nokia for $7.5 billion which was signed the previous year. At that point if time the company had the opportunity to buy Nokia's manufacturing plant situated in Chennai but could not do so since the project was dealing with a tax dispute that remains unresolved to date.
The problem has now aroused for multinational companies that initially used to import smartphones and other merchandises since the taxes have been raised to a great extent. The reason behind increasing taxes is to promote and bolster the native brands.
Microsoft is not the only company that wishes to establish its manufacturing plants in the Indian market whereas local manufacturers are also trying to house their plants in India only to minimize cost. This includes top-notch smartphone manufacturers like Micromax, Karbonn, and Lava. This is not it but global companies like Xiaomi, Asus and Samsung have also shown similar interests in order to bolster and maximize production.
Microsoft understands that there is immense competition in India. For the same reason, the company has decided to offer prices that will be very low to match industry demands. The company has also mentioned that its 4G LTE and 3G smartphones will be priced at significantly low rates in order to attract buyers. Operators offering 3G and 4G LTE packages will also be contacted to promote their packages through Microsoft smartphones.
Hence, in a nutshell, Microsoft products and services are on the right track since the market they wish to conquer has numerous growth opportunities. The strategy they are deploying by offering affordable smartphones is extremely wise and will help them promote the brand in the region. A manufacturing plant will help the company a lot since they will manufacture locally and minimize costs which will help the Indian economy as well.
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