Apple has become the leading smartphone exporter from India, surpassing Samsung in terms of export volumes. In the second quarter of this year, Apple accounted for 49% of India’s total smartphone shipments, while Samsung trailed behind at 45%. This shift highlights Apple’s rapid expansion of local manufacturing in the country.
Since it commenced iPhone manufacturing in India in 2017, Apple has witnessed significant growth in export volumes. The company’s share of exports has risen from 9% in the second quarter of 2022 to nearly half of the total smartphone exports in the second quarter of 2023. Apple’s success can be attributed to its focus on the premium and super-premium segments of the market, as compared to Samsung’s presence across various price ranges.
Apple’s manufacturing in India is primarily conducted by contract manufacturers Foxconn, Wistron, and Pegatron, all of which are part of the Indian government’s production-linked incentive scheme for smartphone manufacturing. These manufacturers have increased production over the past year to cater to the growing Indian market and meet export demands.
Apple’s aim to turn India into an export hub for iPhones is driven by the need to diversify its reliance on China amid ongoing geopolitical tensions. By establishing a strong manufacturing base in India, Apple intends to reduce its dependence on a single manufacturing location and expand its global reach.
In contrast, Samsung and other Android smartphone brands exporting from India have seen a decline in exports. Experts attribute this to the global downturn in demand, which has particularly affected Android smartphone brands. Samsung’s share of export volumes dropped from 50% in the first quarter of 2023 to 45% in the second quarter of 2023, a significant decline from its dominant position of 84% in the second quarter of 2022.
Samsung’s weak export performance in India is also linked to its increasing focus on its factory in North Vietnam, which has become the company’s largest smartphone factory globally. Additionally, other Android brands like Xiaomi, Motorola, Vivo, and Transsion have also experienced a decline in exports.
Despite challenging market conditions, Apple’s sustained growth in the premium segment and strong performance in the US market have positioned it to become the top smartphone brand globally based on annual shipments, according to Counterpoint Research.
Overall, Apple’s rise as the top smartphone exporter from India underscores the company’s commitment to local manufacturing and its efforts to diversify its supply chain. As the Indian smartphone market continues to grow, it is expected that Apple will further strengthen its position as an export hub for iPhones.
