In a recent report, India has solidified its position as the world’s second-largest manufacturing hub for mobile phones, fueled by substantial investments from original equipment manufacturers (OEMs), original design manufacturers (ODMs), and key component companies. This development reflects India’s growing prowess in the mobile phone manufacturing sector.
Exports Surge Expected
India is anticipated to export approximately 22 percent of its total assembled mobile phones in the year 2023, according to insights from Counterpoint Research. This marks a significant stride towards bolstering the ‘Make in India’ initiative, showcasing the country’s potential as a key player in global mobile phone production.
Strong Growth in Exports
Recent government and industry data have shown a notable boost in mobile phone exports, with India achieving exports worth $5.5 billion (over Rs 45,000 crore) in the April-August period of the ongoing fiscal year (FY24). This is a substantial increase from the $3 billion (about Rs 25,000 crore) recorded during the same period in FY22-23.
Market Leader and Future Projections
India is poised to exceed Rs 120,000 crore in mobile phone exports in the current fiscal year, with Apple leading the market with a dominant share of over 50 per cent in FY24. The projection highlights a positive trajectory for India’s mobile phone manufacturing sector.
Industry Dynamics and Key Players
While the report showcases a decline in smartphone shipments from ODMs and Independent Design Houses (IDHs) by six per cent year-on-year in the first half of the year, certain players like Vivo, HONOR, and Transsion Group witnessed growth, mitigating part of the decline attributed to other major players.
Global Landscape
The report also delves into the global smartphone ODM/IDH industry, underscoring the dominance of key players such as Huaqin, Longcheer, and Wingtech, collectively referred to as the ‘Big 3,’ holding a remarkable 76 per cent share in the global ODM/IDH smartphone market in the first half of 2023. This further exemplifies India’s integration into the global mobile phone manufacturing landscape.
Conclusion
With a burgeoning export market and a strong foothold in manufacturing, India’s mobile phone industry is set to make a substantial impact on the global stage, buoyed by strategic investments and a conducive business environment. The trajectory in the mobile phone manufacturing sector signifies India’s continuous progression towards becoming a significant player in the international electronics market.
