India's Booming "Made in India" Smartphone Market: Apple and Samsung Lead, Tata Electronics Emerges

India's Booming "Made in India" Smartphone Market: Apple and Samsung Lead, Tata Electronics EmergesA recent report from Counterpoint Research reveals robust growth in India's domestic smartphone manufacturing sector in 2024. The market experienced a 6% year-on-year increase, with Apple and Samsung dominating, contributing a staggering 94% of export share

India's Booming "Made in India" Smartphone Market: Apple and Samsung Lead, Tata Electronics Emerges

A recent report from Counterpoint Research reveals robust growth in India's domestic smartphone manufacturing sector in 2024. The market experienced a 6% year-on-year increase, with Apple and Samsung dominating, contributing a staggering 94% of export share. This signifies a maturing and increasingly internationalized Indian smartphone manufacturing industry, presenting a significant shift in the global mobile market landscape.

The report delves into the performance of individual manufacturers, highlighting diverse growth trajectories. Samsung, with its strong brand recognition and market strategies, topped the list with a 7% year-on-year growth in the domestic market and a remarkable 13% increase in exports, solidifying its position. This success stems from both its competitive products and its long-term investment and precise market strategies within India.

Vivo, through aggressive expansion of its offline sales channels, achieved a 14% year-on-year growth, capturing 14% of the market share. This extensive offline network effectively reached India's vast consumer base, fueling Vivo's market share expansion and underscoring the continued importance of offline channels in the Indian market.

Foxconn (Hon Hai), benefiting from strong shipments of Apple's flagship iPhone 13, 14, and 15 models, witnessed a 19% year-on-year growth, demonstrating its prowess as a key Apple manufacturing partner. Apple's sustained investment in the Indian market and emphasis on domestic manufacturing further propelled Foxconn's expansion in India.

However, not all manufacturers fared equally well. OPPO experienced a 34% year-on-year decline, falling to fourth place due to intense competition and the shift of its manufacturing operations. This highlights the increasingly competitive landscape, demanding continuous adaptation and enhanced product competitiveness for sustained market share.

Remarkably, Tata Electronics (formerly Wistron) emerged as the fastest-growing manufacturer in 2024, achieving a phenomenal 107% growth rate. This surge is primarily attributed to securing production orders for the iPhone 15/16. Beyond its rapidly expanding contract manufacturing business, Tata Electronics is also actively investing in semiconductor and packaging plants, aiming to enhance its vertical integration and competitiveness for long-term success.

The Indian government's Production Linked Incentive (PLI) scheme played a crucial role in driving the growth of the domestic smartphone manufacturing sector. This scheme effectively attracted significant investments and capacity building from international giants like Apple and Samsung, aiming to reduce import dependency and integrate India more effectively into the global supply chain. Government support has been instrumental in the rise of India's smartphone industry.

Counterpoint predicts double-digit growth for India's domestic smartphone manufacturing market in 2025, leading to further enhancement of local value addition. This indicates continued strong growth and a shift towards higher-end segments of the value chain. India's large population and expanding middle class provide substantial growth potential for the smartphone market.

In summary, 2024 showcased a thriving Indian "Made in India" smartphone market. The strong performance of Apple and Samsung, coupled with the rapid emergence of domestic players like Tata Electronics, fueled the sector's growth. With continued government support and rising market demand, India is poised to become a major global smartphone manufacturing hub. However, intense competition and industry upgrades demand continuous innovation and enhanced competitiveness for manufacturers to thrive in this dynamic market. The future of India's domestic smartphone manufacturing market warrants close observation.