Why Amber Enterprises’ Oppo deal comes with caveats (opens original article in a new tab)

Amber Enterprises is entering smartphone manufacturing via Oppo India, facing challenges like weak margins and competition, but aiming to increase production and local value addition.

• Amber Enterprises is entering smartphone manufacturing through a collaboration with Oppo India, aiming for 8 million units in FY28 and 14-15 million units thereafter.
• Amber faces challenges including weak margins, slowing customer volumes, and fierce competition, with profit-after-tax margins estimated at 1-1.5% compared to Dixon Technologies' 3% Ebitda margin in mobile assembly.
• Amber's strategy includes increasing local value addition through investments in HDI PCB to offset stagnancy in smartphone volumes, with local value addition expected to rise from 10-12% to 35-40% over five to six years.