India is now the third-biggest smartphone exporter to US
What's the story
India's smartphone shipments to the United States have witnessed a remarkable upswing, hitting $3.53 billion between April-December of this fiscal year, per government data. This is a significant leap from the $998 million recorded during the same timeframe last year. The surge in exports has catapulted India into the position of being the third-largest supplier of smartphones to the US, trailing only China and Vietnam. The primary driver behind this growth is an overall boost in smartphone production in India.
Surge in exports
India-made smartphones gain larger slice of US market
Statistics indicate that shares of Indian-manufactured smartphones in the US market have swelled from 2% last year to 7.76% during April-December of this fiscal year. This growth is largely fueled by an uptick in outbound shipments. The total imports by the US from its top five smartphone providers have slipped to $45.1 billion from $49.1 billion in FY'23. Brands like Apple, Google, Samsung, OnePlus and others manufacture smartphones in India.
Other countries
Chinese and Vietnamese smartphone exports witness downturn
During the April-December period, China's smartphone shipments to the US dipped to $35.1 billion from $38.26 billion last year. Likewise, Vietnam experienced a drop in its smartphone exports to the US, sliding down to $5.47 billion from $9.36 billion during the same timeframe. On another note, South Korea's exports climbed up to $858 million from $432 million, while Hong Kong saw a marginal decrease in sales down to $112 million from $132 million during April-December 2022-23.
Insights
India emerges as key player in smartphone production
Smartphones started to make a significant impact on India's export portfolio in 2022-23 when shipments soared to $10.95 billion. This trend persisted with exports reaching $10.5 billion during April-December of 2023-24. The launch of the Product Linked Incentives (PLI) scheme and the foray of US-based iPhone manufacturer Apple into domestic production have played a pivotal role in positioning India as a leading production powerhouse for smartphones.