New Delhi: India has emerged as the world’s second-largest manufacturing centre for mobile phones, due to the substantial investments received by the nation from original equipment manufacturers, original design manufacturers, and component companies. India is set to export approximately 22 percent of its total assembled mobile phones in 2023.
Senior research analyst Ivan Lam, however, emphasised that while India’s role in mobile phone manufacturing is growing, China’s manufacturing and supply chain will remain crucial in the long term.
India’s mobile phone exports received a boost, due to the ‘Make in India’ initiative, worth $5.5 billion (over Rs 45,000 crore) during the April-August period of the fiscal year 2023-24, a significant increase from the $3 billion (about Rs 25,000 crore) recorded during the same period in the previous fiscal year.
Estimates from the Department of Commerce and the India Cellular and Electronics Association (ICEA) suggest that India is on track to exceed Rs 1,20,000 crore in mobile phone exports for the current fiscal year, with Apple leading the market, holding a share of over 50 percent in fiscal year 2023-24.
However, the report also noted a six percent year-on-year (YOY) decline in smartphone shipments from original design manufacturers (ODMs) and Independent Design Houses (ODMs/IDHs) in the first half of this year. This decline was primarily attributed to the weak performance of companies like Samsung, Xiaomi, and Lenovo Group. On the other hand, Vivo, HONOR, and Transsion Group saw gains that partially offset the overall decline.
In the global smartphone ODM/IDH industry, Huaqin, Longcheer, and Wingtech, often referred to as the ‘Big 3,’ continued to dominate in the first half of 2023, accounting for 76 percent of the market share.
The report also mentioned that while outsourced design shipments decreased in the first half of 2023, their share increased compared to the same period in the previous year. The top six ODMs collectively held a 95 percent share of total ODM shipments.
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