A recent report found that OEMs, ODMs, and mobile component and part manufacturers have invested heavily in India to make it the world’s second-largest mobile phone manufacturing hub.
In 2022, China produced four times more mobile phones than India. 2023 handset production is anticipated to be Rs 4-4.25 lakh crore.
Counterpoint Research predicts India would export 22% of its produced mobile phones in 2023. Senior research analyst Ivan Lam warns that China’s manufacturing and supply chain would remain crucial despite India’s rise in mobile manufacturing.
Recent government and industry data shows mobile phone exports worth $5.5 billion (about Rs 45,000 crore) in April-August of the current fiscal year, boosting India’s “Make in India” push. This is up significantly from FY22-23’s $3 billion (approximately Rs 25,000 crore).
India’s mobile phone exports are estimated to exceed Rs 1,20,000 crore in FY24. Apple leads with over 50% market share.
The study found that original design manufacturers (ODMs) and Independent Design Houses (IDHs) smartphone shipments declined 6% in the first half of this year. This drop is mostly due to Samsung, Xiaomi, and Lenovo Group’s poor performance. As Vivo, HONOR, and Transsion Group have grown, this decline has been largely compensated.
The ‘Big 3’—Huaqin, Longcheer, and Wingtech—dominated the global smartphone ODM/IDH market in the first half of 2023, accounting for 76% of the market.
The research also shows that while outsourced design shipments fell in the first half of 2023, their share rose. Top six ODMs accounted for 95% of ODM shipments, confirming their market dominance.
India’s expanding mobile phone manufacturing potential supports its goals to boost domestic production and exports.
Conclusion:-
OEMs, ODMs, and mobile component and components businesses have invested heavily in India, making it the world’s second-largest mobile phone manufacturing hub. In 2022, China produced four times more mobile phones than India. Phone production in India is anticipated to reach Rs 4-4.25 lakh crore in 2023. Counterpoint Research predicts India would export 22% of its produced mobile phones in 2023.
In the first half of 2023, smartphone shipments from ODMs and IDHs declined 6% due to poor performance by Samsung, Xiaomi, and Lenovo Group. Top six ODMs accounted for 95% of ODM shipments, confirming their market dominance. India’s expanding mobile phone manufacturing potential supports its goals to boost domestic production and exports.
