India now second-biggest manufacturing hub for mobile phones globally

India is now the second-biggest manufacturing hub for mobile phones due to heavy investment from original equipment manufacturers, original design manufacturers, and companies dealing in components and parts, as shown in a new report on Tuesday.

According to Counterpoint Research, India is expected to export about 22 per cent of its total assembled mobile phones in 2023.

“However, China’s manufacturing and supply chain will still maintain its essential role in the longer run,” said senior research analyst Ivan Lam.

In a boost to the ‘Make in India’ initiative, India saw mobile phone exports worth $5.5 billion (over INR 45,000 crore) in the April-August period in the ongoing fiscal year (FY24), according to recent government and industry data.

As per estimates by the Department of Commerce and the India Cellular and Electronics Association (ICEA), the April-August period witnessed mobile phone exports worth $5.5 billion, compared to $3 billion (about INR 25,000 crore) in the same period in FY22-23.

India is set to cross INR 1,20,000 crore in mobile phone exports in the current fiscal year, with Apple leading the market with more than 50 per cent in FY24.

Meanwhile, according to the report, smartphone shipments from original design manufacturers (ODMs) and Independent Design Houses (ODMs/IDHs) declined six per cent (year-on-year) in the first half of this year.

“The YoY decline in ODM/IDH companies’ H1 2023 shipments was driven by Samsung, Xiaomi, and Lenovo Group’s weak performance. However, Vivo, HONOR, and Transsion Group’s rise offset part of the decline,” said senior research analyst Shenghao Bai.

Huaqin, Longcheer, and Wingtech continued to dominate the competitive landscape of the global smartphone ODM/IDH industry in H1 2023.

The companies, also known as the ‘Big 3,’ accounted for 76 per cent of the global ODM/IDH smartphone market in the first half. Outsourced design shipments decreased in H1 2023, but their share increased compared to the same period last year, the report mentioned. The top six ODMs took a 95 per cent share of the total ODM shipments.