Analysis of India's Smartphone Export Dominance by Apple and Samsung in 2024

Key Facts and Data Points

• Apple and Samsung combined market share: 94% of India’s smartphone exports in 2024.
• Year-on-year growth in 'Made in India' shipments: 6%.
• Government's Production-Linked Incentive (PLI) scheme: Played a critical role in attracting global manufacturers to set up or expand production facilities in India.

Market Trends and Business Impact

• Export Growth Driven by Local Manufacturing: Both Apple and Samsung expanded their manufacturing operations in India, aligning with the country’s push for self-reliance and global supply chain integration.
• Foxconn's Performance:
  • 19% year-on-year increase in manufacturing volumes in 2024, driven by Apple’s growing presence.
  • Plans to establish a smartphone display module assembly unit to further boost local manufacturing.

Competitive Dynamics and Strategic Considerations

• Tata Electronics:

  • Fastest-growing manufacturer with a 107% year-on-year growth.
  • Growth primarily due to production of iPhone 15 and iPhone 16.
  • Expansion into semiconductor fabrication with a new plant in Dholera, Gujarat.

• Samsung's Dominance:

  • Continued dominance in India’s electronics manufacturing with a 7% year-on-year growth.
  • Focus on increasing exports.

• Vivo's Performance:

  • Secured the second position with a 14% shipment share.
  • Growth driven by offline retail expansion and strengthened distribution network.

Long-Term Effects and Regulatory Impacts

• India as a Manufacturing Hub:
  • Attracting global manufacturers due to factors like large domestic market, competitive labor costs, and government incentives.
  • Expected to grow in double digits in 2025 with increasing local value addition.

Expert Insights

• According to Prachir Singh, Senior Research Analyst at Counterpoint Research:
  • “India offers a compelling case as a manufacturing destination.”
  • Smartphone manufacturing in India is expected to grow in double digits in 2025.

Broader Implications

• Global Supply Chain Impact: The surge in Indian smartphone exports could shift global supply chain dynamics, with India emerging as a key player.
• Domestic Industry Growth: Local manufacturers like Foxconn and Tata Electronics are benefiting from the PLI scheme, driving innovation and employment in India’s tech sector.

Conclusion

The collaboration between Apple, Samsung, and other global manufacturers in India highlights the country’s growing importance as a manufacturing hub. The government’s incentives and favorable business environment are expected to sustain this growth trajectory, with long-term implications for both domestic industries and global electronics markets.