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After Apple, Tata Electronics plans to manufacture phones for Xiaomi and Oppo
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  • After Apple, Tata Electronics plans to manufacture phones for Xiaomi and Oppo

After Apple, Tata Electronics plans to manufacture phones for Xiaomi and Oppo

FP Staff • January 14, 2025, 12:37:45 IST
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Tata Electronics’ ambitious plans don’t stop with Xiaomi and Oppo. The company is also in discussions with other major companies like Microsoft, Dell, and HP, seeking to further diversify its client base through laptop manufacturing

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After Apple, Tata Electronics plans to manufacture phones for Xiaomi and Oppo
Tata Electronics has been in talks with these smartphone giants to manufacture components for them, including camera and display modules, mimicking the model of Foxconn. Image Credit: Reuters

Tata Electronics is taking significant steps to broaden its client base beyond Apple, with plans to start contract manufacturing for major Chinese smartphone brands Xiaomi and Oppo. The company, which already produces enclosures for Apple’s iPhones, is now eyeing a larger role in the electronics manufacturing services (EMS) ecosystem, aiming to scale up its operations, as per a report in the Economic Times.

Tata Electronics has been in talks with these smartphone giants to manufacture components for them, including camera and display modules, mimicking the model of Foxconn, Apple’s key manufacturing partner, as per a report by the Economic Times.  

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New partnerships and growing competition

As part of its expansion, Tata Electronics had discussions with Vivo as well as per the ET report, but these negotiations are now unlikely to materialise due to Vivo’s recent joint venture with Dixon. Tata’s move into Xiaomi and Oppo manufacturing could shift the balance in the competitive landscape, especially in the Indian market.

Both Xiaomi and Oppo rely heavily on contract manufacturers to assemble their smartphones, with companies like Bharat FIH, BYD, and Flextronics among their current partners. This shift is expected to intensify competition with Dixon, which has seen substantial growth in recent years. As Tata Electronics diversifies its supply chain, it could leverage its position to offer more competitive prices, putting pressure on Dixon and other manufacturers.

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Tata’s ambitious plans to become a key Playep

Industry experts see Tata Electronics’ decision to expand beyond Apple as a strategic move to build the scale and capabilities necessary to support a wide array of global technology companies.  

By focusing on high-value components like camera and display modules, Tata Electronics aims to enhance its technical capabilities and operational efficiency, making it an attractive partner for multiple tech giants.

Expanding operations and attracting major clients

Tata Electronics’ ambitious plans don’t stop with Xiaomi and Oppo. The company is also in discussions with other major companies like Microsoft, Dell, and HP, seeking to further diversify its client base.  

Tata Sons Chairman N. Chandrasekaran recently revealed that the Tata group plans to open nine new factories over the next two years, investing $18 billion in electronics and semiconductors. As Tata Electronics continues to grow, its reputation as a credible player in the EMS sector is attracting more attention from potential clients. With the backing of the vast Tata conglomerate, the company’s expansion into new markets seems poised for success.

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