Apple becomes largest smartphone exporter in India, surpassing Samsung
What's the story
Apple has become India's largest smartphone exporter, shipping 49% of the total 12 million shipments in the country in the first quarter (Q1) of this year, reported The Economic Times.
Samsung, which previously held the title, now stands in second place with a 45% share.
This rapid growth highlights Apple's expansion of local manufacturing in India and its aim to reduce dependency on China, particularly amid ongoing geopolitical tensions.
Details
Contract manufacturers fuel Apple's growth in India
Apple's impressive performance in India is attributed to increased production by its contract manufacturers: Foxconn, Wistron, and Pegatron.
The production ramp-up began in the second half of 2022, coinciding with the manufacturing of the iPhone 14 and previous models.
The primary objective has been to address the increasing demand in the Indian market and strengthen export capacity.
What Next?
PLI scheme propels Apple's India strategy
All three manufacturers benefit from the Indian government's production-linked incentive (PLI) scheme for smartphone manufacturing, which has played a crucial role in boosting Apple's operations in the country.
Foxconn, Wistron, and Pegatron have met their production targets and applied for incentives through the PLI scheme.
Foxconn has already begun producing the latest iPhone 15 in Chennai.
Apple intends to establish India as a major manufacturing and export center for iPhones by diversifying production and utilizing India's manufacturing capabilities.
Insights
The changing landscape of smartphone exports from India
The decline in exports by Samsung and other Android smartphone manufacturers from India is linked to a worldwide decrease in demand affecting these brands.
This decline has evidently led to lower export quantities for these brands in India.
Samsung's export market share in India has significantly shifted, falling from a commanding 84% in Q2 2022 to 45% in Q2 2023, indicating a significant transformation in the smartphone export landscape.