Reports State That Smartphone Makers Might Face Issues With Workers Post Lockdown
All factories in India are closed due to the nationwide lockdown to tackle the spread of coronavirus in the country. According to a new report, smartphone companies are likely to face trouble after the lockdown is over as most factory workers have already left for their hometowns.
This could mean that it will take more time to start the manufacturing plants with full capacity. The report states the factories in Noida will be most affected by this. “We can see some problems in factories located in North India as many workers may leave jobs temporarily or may have gone to their villages. Basis of our discussions with some players, the problem will be less in the southern part of the country, as workers live nearby to their factories,” Neil Shah, vice president, Counterpoint Research, was quoted in a media report.
He also said, “Players like Foxconn, Flex and component players in the area would be better prepared. We foresee an advantage to brands like Xiaomi that make their devices in Southern factories.”
Xiaomi has eight factories in Tamil Nadu, where it is assembling its smartphones and televisions sets, while OPPO, Relame, Vivo, and OnePlus are assembling products in Noida and Greater Noida. Industry body Indian Cellular and Electronics Association of India (ICEA) has suggested that the handset makers should get in touch with workers.
“Best practices from China and Korea are being studied because they have been immensely successful in controlling the situation and bring their manufacturing to near normal rapidly,” ICEA Chairman Pankaj Mohindroo has said.