Counterpoint studied the local production of iPhone devices in countries around the world and found that India’s efforts to boost manufacturing were most successful. In 2022, Indian-produced iPhones grew 162% year-on-year by value, outpacing growth rates for other regions. This suggests that India’s strategies to promote small and medium businesses, as well as increasing export opportunities, are working well.
One of the reasons for this increase in local iPhone production could be due to the hefty subsidies offered by the Indian government to companies that produce locally-made devices. In addition, Apple’s introduction of its new iPhone XR has likely helped also drive demand for these phones.
Both Foxconn and Wistron currently lead the EMS industry in India, with their booming businesses being fuelled by increasing exports from Apple. The two manufacturers are expected to continue leading the market in terms of value through 2022, as they aim to provide an efficient and cost-effective manufacturing service that meets the needs of consumers
The decision by Foxconn to invest an additional 500 million in its Indian business indicates the growing importance that the country is beginning to play in its production plans. The company has already installed more than 100,000 workers in India and is currently conducting trials of new manufacturing technologies there. Meanwhile, Wistron is looking to sell its only production plant in the country, indicating that competitors are starting to take note of India’s growing importance as a manufacturing center.
2018 was a banner year for Indian exports. The volume growth of 37% over the previous year resulted in Indian products making up 30% of total smartphone shipments, a new high. This success was likely aided by increasing demand from global markets, led particularly by China and the US. In terms of value terms, exports reached an all-time high worth Rs 1.19 trillion ($22.1 billion).
Due to the booming market for smartphones in India, the Indian government has introduced a number of incentive programs to lure phone manufacturers. Among these is a $6.6 billion incentive program that helped attract both Apple’s and Samsung’s manufacturers to start their production lines in the country. With operations now located all over India, these companies are able to fulfill both domestic and international demand more efficiently, reducing their reliance on China. Overall, these incentives have had a significant impact on the smartphone industry in India and are expected to continue thriving into the future.
Counterpoint market research believes that the slowdown in economic growth and the corresponding decline in consumer demand is one of the key factors behind the slowdown in smartphone shipments. Declining consumer interest has led to a dip in local demand for entry-level and mid-tier smartphones, resulting in a 19% quarter-on-quarter decrease. However, despite this drop, Indian made smartphones continue to see healthy year on year growth as they become increasingly more expensive and sought after by buyers.
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In the country, Samsung remains the leading smartphone manufacturer followed by Oppo. However, in Q4 of 2022, Samsung experienced a year-on-year decline in its shipments due to inventory issues in the entry-level segment. This caused Oppo to take over as the leading smartphone manufacturer in the country.
Year-on-year, the amount of locally manufactured goods in China declined by 3% in 2022, however due to the increase in exports from global OEMs this caused local shipments to rise by 2%. Despite this surge, overall demand for Chinese products decreased meaning that manufacturers had a harder time turning a profit.
