Vivo, India’s third largest smartphone brand, is eliminating jobs at its smartphone manufacturing plant at Greater Noida in Uttar Pradesh.
Vivo has confirmed the development.
“With continuous growth and strategic review, we look at staffing the right size in various divisions to improve productivity. The layoff is in line with this business decision,” Vivo said in a statement issued on Wednesday.
“We have strictly adhered to the rules and regulations, and the contract, and are taking all the right measures to ensure a peaceful transition keeping their best interests in consideration,” a spokesperson at Vivo said.
Vivo has shipped 3.4 million smartphones to take third spot in the India smartphone market share by cashing on the demand for its popular phones in tier-two and tier-three cities.
Market research agency Canalys said the India smartphone market fell 4 percent year on year to just under 27 million units in Q2 2017, said Canalys.
Samsung and Xiaomi are the first and second smartphone brands in India based on their market share in the country.
Oppo has displaced Lenovo to take fourth place. Lenovo is fifth largest phone maker with 1.9 million smartphones in India.
Collectively, Xiaomi, Oppo, Vivo, Gionee and Lenovo control over 50 percent of India’s smartphone market.
The Goods and Services Tax (GST), applicable in India from 1 July 2017, has negatively affected the phone market during the second quarter.
There is general confusion in the entire market over GST and a lack of awareness about the changes that are needed. “Apprehension among distributors and retailers regarding the impact on prices has caused the market to adopt a wait-and-see policy,” said Canalys Analyst Rushabh Doshi.
Canalys said the India smartphone market will emerge stronger post-GST. Phone vendors can look forward to leaner distribution, faster delivery and increased demand from local retailers and distributors.
Earlier, market research agency GfK said smartphone demand in India grew 14 percent. GfK expects the recently announced Goods and Services Tax (GST) will have no impact on smartphone demand in the country.
