India has risen to become the world's second-largest manufacturing hub for mobile phones, largely attributed to significant investments from original equipment manufacturers (OEMs), original design manufacturers (ODMs), and companies specializing in mobile components and parts, according to a recent report.
Counterpoint Research estimates that India is poised to export approximately 22% of its total assembled mobile phones in 2023. While India's ascent in mobile manufacturing is notable, China's manufacturing and supply chain will continue to maintain its pivotal role in the longer term, cautions senior research analyst Ivan Lam.
This development is a significant boost to India's "Make in India" initiative, with recent data from government and industry sources revealing mobile phone exports worth $5.5 billion (over Rs 45,000 crore) during the April-August period of the ongoing fiscal year (FY24). This marks a substantial increase compared to the $3 billion (about Rs 25,000 crore) recorded during the same period in FY22-23.
Furthermore, India is on track to surpass Rs 1,20,000 crore in mobile phone exports in the current fiscal year, with Apple taking the lead, commanding more than 50% of the market share in FY24.
However, the report also notes a six per cent year-on-year decline in smartphone shipments from original design manufacturers (ODMs) and Independent Design Houses (IDHs) during the first half of this year. This decline is primarily attributed to the weaker performance of companies such as Samsung, Xiaomi, and Lenovo Group. Nevertheless, the rise of Vivo, HONOR, and Transsion Group has partially offset this decline.
In the global smartphone ODM/IDH industry, Huaqin, Longcheer, and Wingtech, collectively known as the 'Big 3,' continued to dominate, accounting for 76% of the market share in the first half of 2023.
The report further highlights that while outsourced design shipments decreased in the first half of 2023, their share increased compared to the same period the previous year. The top six ODMs held a 95% share of the total ODM shipments, reinforcing their significant presence in the market.
India's growing prominence in mobile phone manufacturing underscores its potential as a global manufacturing hub, aligning with the country's aspirations to boost domestic production and exports.
Inputs from IANS