India's burgeoning smartphone manufacturing sector: 6% growth in 2024, led by Apple and Samsung

India's burgeoning smartphone manufacturing sector: 6% growth in 2024, led by Apple and SamsungAccording to the latest research data from Counterpoint, "Make in India" smartphones saw a 6% year-on-year increase in shipments in 2024, driven significantly by increased exports from Apple and Samsung. This growth is primarily attributed to these two giants, which accounted for approximately 94% of India's total smartphone exports

India's burgeoning smartphone manufacturing sector: 6% growth in 2024, led by Apple and Samsung

According to the latest research data from Counterpoint, "Make in India" smartphones saw a 6% year-on-year increase in shipments in 2024, driven significantly by increased exports from Apple and Samsung. This growth is primarily attributed to these two giants, which accounted for approximately 94% of India's total smartphone exports. Both companies are actively expanding their manufacturing footprint in India, aligning with the government's strategy to reduce import dependence and enhance its position in the global supply chain.

The Indian government's Production Linked Incentive (PLI) scheme provides strong policy support for global manufacturers to establish or expand their production facilities in India. This, coupled with a large domestic market, relatively low labor costs, and other favorable factors, has fueled the rapid growth of India's domestic smartphone manufacturing industry.

Senior Research Analyst Prachir Singh commented: "Major global smartphone manufacturers are actively pursuing production diversification to enhance supply chain resilience and mitigate the risks associated with over-reliance on a single country. India, with its vast domestic market, low labor costs, and government incentives promoting local manufacturing, has emerged as an ideal manufacturing destination. We expect double-digit growth in India's smartphone manufacturing sector by 2025, along with a continuous increase in local value addition."

Analyzing manufacturer performance, Research Analyst Tanvi Sharma noted that Samsung solidified its leadership in India's electronics manufacturing sector in 2024, with export-driven growth leading to a 7% year-on-year increase in shipments. Vivo, with its offline retail expansion and strengthened distribution network, secured the second position with a 14% market share and a remarkable 14% year-on-year growth. Shipment tracking data indicates Vivo held the top spot in India's smartphone shipments in 2024.

Foxconn Hon Hai experienced a 19% year-on-year increase in manufacturing volume in 2024, fueled by strong Apple orders. To further enhance local manufacturing capabilities, Foxconn plans to establish a smartphone display module assembly line in India. However, OPPO saw a 34% year-on-year decline, falling to fourth place, due to intense competition and increased Original Design Manufacturing (ODM) contributions from OPPO and Realme. DBG achieved double-digit growth in 2024 by expanding its partnerships with Xiaomi and Realme.

Tata Electronics emerged as the fastest-growing manufacturer in 2024, achieving a staggering 107% year-on-year growth, primarily driven by strong sales of the iPhone 15 and iPhone 16. Tata Electronics continues to expand its iPhone assembly operations, establishing a new factory in Dholera, Gujarat, and is actively venturing into semiconductor manufacturing with an OSAT plant in Assam. These moves, along with diversified acquisitions and partnerships, solidify Tata Electronics' position as a key player in the global electronics supply chain.

Across the entire mobile phone sector (including smartphones and feature phones), Dixon emerged as a top manufacturer through collaborations with Transsion brands and Motorola. In the smartphone segment, Dixon witnessed a 39% year-on-year shipment growth, largely attributed to new partnerships with Transsion brands and Realme. Its strategic collaborations with multiple brands and joint ventures significantly contributed to its rapid growth within India's mobile phone manufacturing ecosystem.

The success of Apple and Samsung is not coincidental. They leveraged government incentives, invested heavily in manufacturing facilities, and effectively integrated local labor resources. This not only boosted India's economic development but also brought new dynamism and balance to the global smartphone supply chain. India's success story offers valuable lessons to other nations, demonstrating how government policy and corporate engagement can effectively accelerate the growth of local manufacturing.

India's rapid smartphone manufacturing growth is not without its challenges. Intense market competition, supply chain complexities, and the pressure of technological upgrades require continuous attention and proactive strategies. However, with its enormous market potential, improving policy environment, and increasingly mature industrial base, India's smartphone manufacturing sector is poised to maintain strong growth in the coming years.

It's noteworthy that the rise of domestic Indian brands has injected new vitality into the market. Vivo's success demonstrates that by cultivating the local market and strengthening distribution networks, domestic brands can effectively compete with international giants and achieve market leadership. Other domestic brands should learn from Vivo's success and further enhance their product competitiveness and brand influence.

The future direction of India's smartphone manufacturing sector may lie in further increasing the completeness of the local value chain, strengthening R&D capabilities, and actively participating in the reshaping of the global industrial chain. Only then can it better address the challenges posed by global economic changes and ensure sustained competitiveness and growth in international competition. Continued policy support from the Indian government and continuous innovation and efforts from companies will be crucial for the continued prosperity of India's smartphone manufacturing sector.

India's rise is not only significant for its own mobile phone manufacturing industry but also has profound implications for the global economic landscape. It symbolizes the reshaping of the global manufacturing map and the elevation of developing countries' status in the global industrial chain. India's success provides invaluable lessons for other developing countries, promoting more balanced and sustainable global economic development. Closely monitoring the development of India's smartphone manufacturing sector is crucial for understanding global economic trends.

In conclusion, the growth of India's smartphone manufacturing sector in 2024 is the result of multiple factors working in synergy. Government policy support, active corporate investment, and a large domestic market have provided a solid foundation for this growth. In the future, India's smartphone manufacturing sector is expected to continue its strong growth trajectory and have an even more profound impact on the global economic landscape. This growth trend deserves continued attention and in-depth study. This is not only crucial for India's own economic development but also provides new perspectives and insights for global economic development. India's experience will provide valuable reference for other developing countries, driving global economic development towards a more balanced and sustainable path. Continuously monitoring the dynamics of India's smartphone manufacturing sector is crucial for grasping the pulse of global economic development. This is a market full of opportunities and challenges, and its future development deserves our continued attention and in-depth research.