New Delhi, October 3: India has emerged as the world’s second-largest manufacturing hub for mobile phones, thanks to substantial investments from original equipment manufacturers (OEMs), original design manufacturers (ODMs), and component and parts companies, as revealed in a recent report.
According to Counterpoint Research, India is projected to export approximately 22 percent of its total assembled mobile phones in 2023, marking a significant milestone in the country’s mobile manufacturing sector.
However, senior research analyst Ivan Lam noted, “China’s manufacturing and supply chain will still maintain its essential role in the longer run.”
In a boost to the ‘Make in India’ initiative, India reported mobile phone exports worth $5.5 billion (over Rs 45,000 crore) during the April-August period of the ongoing fiscal year (FY24), as per government and industry data.
Estimates from the Department of Commerce and the India Cellular and Electronics Association (ICEA) indicate that mobile phone exports during this period surpassed $5.5 billion, compared to $3 billion (approximately Rs 25,000 crore) in the same period of FY22-23.
The current fiscal year is expected to witness India’s mobile phone exports exceeding Rs 1,20,000 crore, with Apple leading the market with a share of more than 50 percent in FY24.
Meanwhile, the report highlights a six percent year-on-year 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 driven by weak performances from companies like Samsung, Xiaomi, and Lenovo Group. However, the rise of companies like Vivo, HONOR, and Transsion Group partially offset this decline.
In terms of the global smartphone ODM/IDH industry, Huaqin, Longcheer, and Wingtech, collectively known as the ‘Big 3,’ continued to dominate, accounting for 76 percent of the market in the first half of 2023. Although outsourced design shipments decreased in H1 2023, their share increased compared to the same period last year, with the top six ODMs capturing 95 percent of the total ODM shipments.
