{"id":27110,"date":"2025-01-14T22:11:15","date_gmt":"2025-01-14T22:11:15","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/marketing\/tata-electronics-goes-beyond-apple-looks-to-build-for-xiaomi-oppo-et-brandequity\/"},"modified":"2025-01-14T22:11:15","modified_gmt":"2025-01-14T22:11:15","slug":"tata-electronics-goes-beyond-apple-looks-to-build-for-xiaomi-oppo-et-brandequity","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=27110","title":{"rendered":"Tata Electronics goes beyond Apple, looks to build for Xiaomi, Oppo, ET BrandEquity"},"content":{"rendered":"


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Tata Electronics<\/a> is in talks with Xiaomi<\/a> and Oppo<\/a> to begin contract manufacturing<\/a> for the Chinese smartphone companies, in a bid to move beyond supplying only to Apple, people aware of the development told ET.<\/p>\n

“Tata Electronics has realised that in order to be a top player in the electronics manufacturing services<\/a> (EMS) ecosystem, it has to focus on scale now,” one of the people said.<\/p>\n

“They (Tata Electronics) have been in talks with the top Chinese smartphone players including Xiaomi and Oppo to start making components for them,” the person added. “They were initially also in talks with Vivo<\/a>, but it is unlikely that the Vivo partnership will go through as they have entered into a joint venture with Dixon<\/a>.”<\/p>\n

The company, which makes enclosures for iPhone, is increasingly mimicking a Foxconn-like model and is looking to move up the value chain by producing components like camera and display modules for smartphone players.<\/p>\n

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Queries sent to Tata Electronics, Xiaomi, Vivo and Oppo remained unanswered as of press time Monday.<\/p>\n

Vivo and contract manufacturer Dixon said last month that they would set up a joint venture for manufacturing of electronic devices, including smartphones. Dixon will hold a 51% stake in the JV, while Vivo India will hold the remaining 49%, as per a regulatory filing.<\/p>\n

Tata Electronics’ move to expand beyond Apple is being viewed as one that could intensify the competition between Noida-headquartered Dixon and the electronics arm of the Tata conglomerate.<\/p>\n

“These players will use the Tatas wanting to get into the space not just to diversify their supply chain but also as a leverage point,” another person in the know said. “Dixon is becoming very big so they are getting more and more selling power. As you become big, it is hard to keep the same rates going. What Xiaomi was getting for manufacturing earlier, they will not get the same price.”<\/p>\n

Prabhu Ram, head of industry intelligence group at Cybermedia Research, said Tata Electronics’ strategy represented an \u201caudacious gambit\u201d to build the manufacturing maturity and ecosystem necessary to support multiple technology giants and establish itself as a key player in the global electronics supply chain<\/a>.<\/p>\n

“By expanding its portfolio beyond Apple to potentially include leading Android OEMs, Tata Electronics seeks to achieve both the scale and sophistication demanded by the contract manufacturing industry,” he said. “The capabilities developed through component manufacturing, such as camera and display modules, will enhance not only operational efficiency but also the breadth of the company’s technical capabilities.”<\/p>\n

Like Apple, Ram said, Xiaomi relies heavily on contract manufacturers for the assembly of its smartphones. Bharat FIH, BYD, DBG Technology, Flextronics and Padget Electronics (Dixon) are the company’s key partners in India.<\/p>\n

As per CMR’s research, as of 2024 end, the market share of Xiaomi (including POCO) stood at 12% in India while that of Vivo was 17% and Oppo, 11%, he said.<\/p>\n

“Oppo has its own manufacturing facility in Noida but they are expecting some trouble being a Chinese player and are looking to partner with Tata Electronics in order to avoid the scrutiny,” one industry watcher said.<\/p>\n

Tata Electronics has been making no bones about its ambitious plans. Only last week, Tata Sons Chairman N Chandrasekaran said that the group plans to open nine new factories within the next 24 months and will be investing $18 billion in electronics and semiconductors.<\/p>\n

Last month, ET had reported that Tata Electronics was looking to move beyond being an Apple supplier<\/a> alone and was in talks with Microsoft, Dell, HP and several other large companies to onboard them as clients.<\/p>\n

At the time, a source had told ET that while the company “had its hands full” currently with work for Apple, it was keen to set this strategy in motion rapidly.<\/p>\n

“Tata Electronics is now recognised as a credible player,” this person had told ET. “The plan was always to be an integrated EMS player and so this was a natural progression \u2014 to service multiple clients. Being able to service Apple has led to a lot of inbound interest from other companies.”<\/p>\n

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