Electronics manufacturing services company Amber Enterprises India is set to enter the smartphone manufacturing business, with the company expected to begin commercial production of smartphones for Oppo, OnePlus and Realme from the first quarter of financial year 2027-28. The move will expand Amber’s presence beyond consumer durables and electronics and deepen the role of contract manufacturing in India’s growing smartphone ecosystem.
The manufacturing arrangement with Oppo Mobiles India was signed in June 2026 and covers smartphones sold under the Oppo, OnePlus and Realme brands. Trial production is expected to begin in the fourth quarter of FY27, followed by commercial production in Q1 FY28. Amber is initially targeting around 8 million smartphones in the first year, with volumes expected to rise to 13–15 million units in the second year.
Amber Enters India’s Smartphone Manufacturing Market
Amber Enterprises has traditionally been associated with manufacturing consumer durables and electronic components, particularly air conditioners and related products.
Its entry into smartphone manufacturing represents a strategic expansion into a higher-volume electronics category.
Under the agreement, Amber will manufacture phones for Oppo India, including devices sold under the Oppo, OnePlus and Realme brands.
| Key Detail | Information |
|---|---|
| Manufacturer | Amber Enterprises India |
| Partner | Oppo Mobiles India |
| Brands covered | Oppo, OnePlus and Realme |
| Trial production | Q4 FY27 |
| Commercial production | Q1 FY28 |
| Initial annual target | Around 8 million units |
| Second-year target | 13–15 million units |
| Manufacturing model | Asset-light |
| Initial capex | Below ₹50 crore |
| Manufacturing location | Existing Oppo facility in Noida |
| Agreement date | June 18, 2026 |
The arrangement is expected to allow Amber to enter the smartphone market without making a large upfront investment in a new manufacturing facility.
Production to Begin in Q1 FY28
Amber expects commercial smartphone production to begin during the first quarter of FY28.
Before that, trial production is scheduled for Q4 FY27.
This phased approach should allow the company to test production processes, supply chains and quality systems before moving to larger commercial volumes.
Production Timeline
Q4 FY27
↓
Trial production
↓
Testing and process validation
↓
Q1 FY28
↓
Commercial production
↓
Around 8 million units
↓
Year two
↓
13–15 million units
The gradual ramp-up is intended to reduce execution risks while allowing Amber to build manufacturing expertise in smartphones.
Oppo, OnePlus and Realme Will Be Covered
The agreement covers three major smartphone brands associated with the Oppo ecosystem.
Oppo is one of India’s largest smartphone brands, while OnePlus has a strong presence in the premium and upper-mid-range segments.
Realme has historically focused heavily on value-oriented smartphones.
Together, the three brands give Amber exposure to multiple segments of India’s smartphone market.
Brand Portfolio
Oppo
↓
Mainstream and premium smartphones
+
OnePlus
↓
Premium and performance-focused smartphones
+
Realme
↓
Value and mid-range smartphones
↓
Amber manufacturing platform
The diversification could help Amber manage demand across different product categories.
Amber Targets 8 Million Phones in the First Year
Amber is initially targeting production of approximately 8 million smartphones in the first year of commercial operations.
The company expects volumes to increase to between 13 million and 15 million units in the second year.
That would represent a substantial increase as the manufacturing operation scales.
| Production Period | Target |
|---|---|
| Initial commercial year | ~8 million units |
| Second year | 13–15 million units |
| Potential increase | About 63–88% |
The ramp-up will depend on demand, production efficiency, supply-chain readiness and the requirements of the three brands.
Asset-Light Manufacturing Model
One of the most important aspects of the arrangement is that Amber does not need to build a completely new smartphone factory for the initial programme.
Manufacturing will take place at an existing facility in Noida under a sub-lease arrangement with Oppo India.
This significantly reduces the amount of capital Amber needs to deploy.
Traditional Manufacturing Model
New factory
↓
Land
+
Building
+
Machinery
+
Utilities
+
Production lines
↓
Large capital investment
Amber-Oppo Model
Existing Oppo facility
↓
Sub-lease
↓
Amber manufacturing operations
↓
Limited initial capex
↓
Faster production start
The structure allows Amber to enter the market with relatively low financial exposure.
Initial Capex Is Expected Below ₹50 Crore
Amber’s initial capital expenditure for the smartphone manufacturing operation is expected to remain below ₹50 crore.
The relatively low investment is possible because the company will use an existing facility rather than establishing a large greenfield plant.
The company is also expected to require relatively limited working capital under the arrangement.
Why the Asset-Light Model Matters
Smartphone manufacturing can require significant investment in surface-mount technology, assembly lines, testing equipment and supply-chain infrastructure.
By using an existing facility, Amber can avoid much of the upfront cost.
This could improve the economics of its entry into the sector if production volumes increase as planned.
Low-Capex Entry
Existing infrastructure
+
Limited new equipment
+
Existing supply chain
+
Oppo partnership
↓
Lower entry cost
↓
Faster commercialisation
↓
Potentially higher capital efficiency
The model could also provide Amber with an opportunity to learn the smartphone manufacturing business before making larger investments.
Noida Will Be an Important Manufacturing Base
The smartphone production will take place at an existing facility in Noida.
The region has developed into one of India’s major electronics manufacturing clusters.
Its proximity to suppliers, logistics networks and a large consumer market makes it an important location for smartphone production.
India’s Smartphone Manufacturing Ecosystem Is Expanding
India has become a major global smartphone manufacturing base.
Large international brands and electronics manufacturing companies have expanded production capacity in the country as manufacturers seek to diversify supply chains and increase local production.
Government incentives and India’s large domestic market have supported this expansion.
India’s Electronics Manufacturing Cycle
Smartphone brands
↓
Manufacturing partners
↓
Component suppliers
↓
PCB and semiconductor ecosystem
↓
Assembly
↓
Testing
↓
Domestic sales
+
Exports
↓
Electronics manufacturing growth
Amber’s entry adds another domestic manufacturing player to this ecosystem.
Local Manufacturing Is Becoming More Important
Smartphone companies are increasingly looking to increase the proportion of devices manufactured in India.
This helps companies serve the domestic market while potentially creating an export base.
For global brands, India has also become an important alternative manufacturing location as companies seek to diversify production.
Oppo’s Manufacturing Network Is Expanding Through Partnerships
The Amber arrangement allows Oppo to use another manufacturing partner for its India operations.
Instead of relying entirely on its own facilities, Oppo can use an asset-light model to increase production flexibility.
This can become particularly useful when demand changes across product categories.
OnePlus and Realme Add Volume Potential
The inclusion of OnePlus and Realme could make the agreement more attractive to Amber because the manufacturing relationship is not limited to one smartphone brand.
The three brands have different customer segments and product cycles.
This can potentially create a broader production pipeline for Amber.
Multiple Brands
Oppo demand
+
OnePlus demand
+
Realme demand
↓
Combined production requirement
↓
Higher manufacturing utilisation
↓
Better asset utilisation
A diversified customer base can also reduce dependence on a single product category.
Amber Is Diversifying Beyond Consumer Durables
Amber’s traditional business has been heavily linked to consumer electronics and air-conditioner manufacturing.
The smartphone agreement expands its exposure to mobile devices.
This is strategically important because smartphone manufacturing can provide large production volumes and greater opportunities to participate in India’s electronics manufacturing expansion.
Electronics Is Becoming a Larger Part of Amber’s Business
Amber has been investing in electronics manufacturing capabilities and component businesses.
Its expansion into smartphones follows investments in areas such as printed circuit boards and other electronics-related manufacturing.
The company is therefore gradually moving toward a broader electronics manufacturing platform.
Amber’s Expansion
Consumer durables
↓
Electronics components
↓
PCBs
↓
Electronics manufacturing
↓
Smartphones
↓
Broader EMS platform
This strategy could reduce dependence on seasonal consumer-durable demand.
Smartphone Manufacturing Could Reduce Seasonality
Air-conditioner demand is highly seasonal in India.
The strongest demand generally occurs during the summer months.
Smartphone production, by contrast, is spread throughout the year.
Adding smartphones to its manufacturing portfolio could therefore provide Amber with a more balanced revenue profile.
Business Mix
Air conditioners
↓
Seasonal demand
+
Electronics
↓
Year-round demand
+
Smartphones
↓
High-volume year-round production
↓
More diversified revenue
This diversification could be particularly useful as Amber continues to scale its electronics operations.
Amber’s Manufacturing Model Could Support Scale
The initial target of 8 million units gives Amber a relatively large production base from the beginning.
If the company successfully reaches 13–15 million units in the second year, smartphone manufacturing could become a meaningful part of its business.
The scale will ultimately depend on the number and type of models assigned to the facility.
Supply-Chain Localisation Will Be Important
The success of Amber’s smartphone manufacturing business will depend partly on how much of the device can be sourced locally.
Smartphone manufacturing involves multiple components, including:
- Displays
- Batteries
- Printed circuit boards
- Camera modules
- Semiconductor chips
- Memory
- Connectors
- Mechanical components
- Chargers and accessories
Greater domestic sourcing could increase value addition within India.
Localisation Could Determine Long-Term Economics
Manufacturing smartphones through final assembly alone generally produces lower value addition than producing components domestically.
As India’s electronics ecosystem develops, manufacturers are expected to increase local sourcing.
Localisation Path
Final assembly
↓
Component sourcing
↓
PCB assembly
↓
Display and camera ecosystem
↓
Battery manufacturing
↓
Semiconductor ecosystem
↓
Higher domestic value addition
Amber’s long-term opportunity could therefore extend beyond phone assembly.
The Government Is Encouraging Electronics Manufacturing
India has introduced multiple policy measures to encourage domestic electronics production.
Production-linked incentives and other industrial policies have helped attract manufacturing investment.
Smartphone production has been one of the most visible success stories of India’s electronics-manufacturing strategy.
India Is Also Building an Export Base
India’s smartphone manufacturing industry increasingly serves both domestic demand and export markets.
Large manufacturers have expanded production for international markets.
A larger ecosystem of contract manufacturers could support India’s ambition to become a major global electronics manufacturing hub.
Smartphone Exports Could Create Additional Opportunities
If Amber’s manufacturing operations achieve sufficient scale and quality, the facility could potentially support export-oriented production in the future.
However, the current arrangement primarily establishes the company’s role in manufacturing for Oppo, OnePlus and Realme in India.
Future export plans would depend on the brands’ requirements.
Chinese Smartphone Brands Remain Important in India
Oppo, OnePlus and Realme continue to hold significant positions in India’s smartphone market.
The brands have faced increasing competition from Samsung, Apple, Xiaomi, Vivo and other manufacturers.
Despite changing market dynamics, the three brands together provide a substantial potential production base.
Market Share Creates Manufacturing Opportunity
Recent industry data indicates that Oppo and its associated brands, including OnePlus and Realme, represented a significant share of India’s smartphone market in Q2 2026.
This gives Amber a sizeable addressable production opportunity.
However, smartphone market share can change quickly as brands launch new models and competitors adjust pricing.
Competition Is Becoming More Intense
India’s smartphone market is increasingly polarized between premium and value segments.
Apple and Samsung have strengthened their positions in premium devices, while Chinese brands continue to compete aggressively in the mass and mid-range categories.
The manufacturing relationship gives Amber exposure to a market where product launches occur frequently.
The Deal Could Strengthen Amber’s Electronics Business
Amber has been increasing its focus on higher-value electronics businesses.
Smartphone manufacturing could complement its existing electronics operations and create new relationships with major technology companies.
The partnership could also help Amber develop expertise in high-volume precision manufacturing.
Technology and Quality Requirements Will Be High
Smartphone manufacturing requires strict quality control.
Devices need to meet tight specifications for assembly, testing, reliability and cosmetic quality.
Amber will therefore need to meet the standards established by Oppo and its associated brands.
Smartphone Manufacturing
Components
↓
Assembly
↓
Software installation
↓
Testing
↓
Quality inspection
↓
Packaging
↓
Distribution
Every stage needs to operate at high efficiency to maintain margins.
Volume Will Be Critical
The economics of contract manufacturing depend heavily on production volumes.
Higher volumes allow manufacturers to spread fixed costs over more units.
Amber’s ability to reach its targeted 8 million units initially and 13–15 million units subsequently will therefore be important.
Volume Economics
Higher production
↓
Better factory utilisation
↓
Lower cost per unit
↓
Improved manufacturing efficiency
↓
Potentially stronger margins
The opposite could occur if volumes fall short of expectations.
The Partnership Also Carries Risks
While the agreement offers Amber a relatively low-cost entry into smartphones, the business is not without risks.
Potential challenges include:
- Smartphone demand volatility
- Pricing pressure
- Customer concentration
- Production delays
- Component shortages
- Quality-control issues
- Lower-than-expected volumes
- Rapid product-cycle changes
- Geopolitical restrictions
- Localisation requirements
The asset-light model reduces capital risk but does not eliminate operating risk.
Customer Concentration Will Need Monitoring
Amber’s smartphone manufacturing arrangement is tied to Oppo India and its associated brands.
Although three brands are covered, they are part of the same broader business ecosystem.
This means Amber’s exposure remains concentrated compared with having multiple unrelated smartphone customers.
Smartphone Product Cycles Are Short
Smartphone manufacturers regularly introduce new models.
Production lines may need to be adjusted to accommodate different designs and specifications.
Amber will therefore need manufacturing flexibility to remain competitive.
Geopolitics Could Affect the Business
India’s relationship with China remains an important consideration for Chinese smartphone brands.
Regulatory scrutiny, investment restrictions and changes in import or localisation policies could affect how Chinese brands operate in India.
Amber’s role as a domestic manufacturing partner could potentially help increase local value addition, but broader policy changes remain an external risk.
Press Note 3 Considerations
The arrangement is structured around an existing Oppo facility and is expected to avoid the need for a new investment that would trigger Press Note 3 approval requirements.
This is significant because India’s Press Note 3 framework places additional scrutiny on foreign investment from countries sharing a land border with India.
The asset-light structure therefore helps simplify the initial manufacturing arrangement.
What It Means for Amber Enterprises
For Amber, the deal represents an opportunity to enter a large and rapidly growing electronics category with limited initial capital expenditure.
The company can build smartphone manufacturing capabilities while using existing infrastructure.
If volumes rise as planned, the business could become an important growth driver.
What It Means for Oppo
For Oppo, the partnership provides additional manufacturing capacity in India.
It can potentially improve production flexibility while allowing the company to increase local manufacturing without relying entirely on new company-owned facilities.
What It Means for OnePlus
OnePlus gains access to an additional manufacturing arrangement in India through its broader Oppo ecosystem.
Local manufacturing can help the brand meet domestic demand while potentially supporting faster production scaling.
What It Means for Realme
Realme’s inclusion gives Amber exposure to the value and mid-range smartphone market.
The brand’s relatively high-volume product portfolio could support Amber’s targeted production ramp-up.
What It Means for India’s Electronics Industry
The deal represents another step toward building a larger domestic electronics manufacturing ecosystem.
More contract manufacturers can create additional demand for component suppliers, logistics providers and electronics-production services.
Manufacturing Ecosystem
Smartphone brands
↓
EMS companies
↓
Component suppliers
↓
PCB manufacturers
↓
Battery and display suppliers
↓
Logistics
↓
Exports
↓
Electronics ecosystem
The expansion could therefore create benefits beyond the companies directly involved.
What It Means for Localisation
The key long-term question will be how much value is added in India.
If Amber gradually increases domestic sourcing, the partnership could contribute to India’s broader localisation objectives.
If production remains primarily assembly-focused, the economic impact would be more limited.
What Investors Should Watch
Investors should monitor:
- Trial production in Q4 FY27
- Commercial production in Q1 FY28
- Initial 8 million-unit target
- Second-year 13–15 million-unit target
- Capacity utilisation
- Localisation levels
- Revenue contribution
- Profit margins
- Customer concentration
- Smartphone market share
- Future capex requirements
- Export opportunities
The pace at which Amber scales smartphone production will be particularly important.
Key Facts at a Glance
| Metric | Detail |
|---|---|
| Manufacturer | Amber Enterprises |
| Partner | Oppo Mobiles India |
| Brands | Oppo, OnePlus, Realme |
| Agreement signed | June 18, 2026 |
| Trial production | Q4 FY27 |
| Commercial production | Q1 FY28 |
| First-year production target | ~8 million units |
| Second-year target | 13–15 million units |
| Initial capex | Below ₹50 crore |
| Manufacturing model | Asset-light |
| Facility | Existing Oppo facility in Noida |
| Main strategic benefit | Diversification into smartphone manufacturing |
Infographic: Amber’s Smartphone Manufacturing Plan
AMBER ENTERPRISES
↓
PARTNERS WITH OPPO INDIA
↓
MANUFACTURE
↓
OPPO
+
ONEPLUS
+
REALME
↓
EXISTING OPPO FACILITY
↓
NOIDA
↓
TRIAL PRODUCTION
Q4 FY27
↓
COMMERCIAL PRODUCTION
Q1 FY28
↓
YEAR ONE
~8 MILLION UNITS
↓
YEAR TWO
13–15 MILLION UNITS
↓
INITIAL CAPEX
BELOW ₹50 CRORE
↓
ASSET-LIGHT MODEL
↓
HIGHER MANUFACTURING SCALE
↓
BROADER ELECTRONICS BUSINESS
↓
INDIA’S GROWING SMARTPHONE MANUFACTURING ECOSYSTEM
The Bigger Picture
Amber Enterprises’ entry into smartphone manufacturing marks an important expansion of India’s electronics manufacturing ecosystem. Through its agreement with Oppo Mobiles India, the company will manufacture smartphones for Oppo, OnePlus and Realme, with trial production planned for Q4 FY27 and commercial production expected from Q1 FY28. The initial target of around 8 million units, followed by 13–15 million units in the second year, gives Amber a potentially significant new manufacturing business.
The asset-light structure is particularly important because Amber can use an existing Oppo facility in Noida and keep initial capital expenditure below ₹50 crore. The deal also fits into Amber’s broader strategy of expanding beyond air-conditioner and consumer-durable manufacturing into higher-value electronics. For India, the partnership adds another manufacturing platform for major smartphone brands and could support greater domestic value addition if component localisation increases over time.
Looking Ahead
The immediate test for Amber will be execution. The company will need to complete trial production, achieve the targeted commercial ramp-up and maintain the quality standards required by Oppo, OnePlus and Realme. Reaching approximately 8 million units in the first year and subsequently scaling toward 13–15 million units will determine how meaningful smartphones become to Amber’s overall business.
Over the longer term, the partnership could become more valuable if Amber expands its manufacturing capabilities and increases localisation across the smartphone supply chain. India’s push to become a global electronics manufacturing hub will depend not only on assembling finished devices but also on building domestic capabilities in PCBs, displays, batteries, components and other technologies. Amber’s smartphone foray could therefore represent the beginning of a broader transition from consumer-durables manufacturing toward a diversified electronics manufacturing platform.
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