‘Made-In-India’ Smartphone

All major global tech companies, including Apple, Samsung, Xiaomi, and others, have established smartphone manufacturing facilities in India. These companies are not just aiming to capture a sizable share of the second-largest smartphone market in the world but also widening their profit margins by leveraging on the incentive schemes offered by the Indian government to local manufacturers.

According to Counterpoint Research, the value of the Made-in-India smartphones shipped during 2022 increased an impressive 34% YoY. The rise in the value of made-in-India smartphone shipments is mostly driven by a local upward trend in premiumization, along with an increase in premium smartphone exports, particularly from Apple.

India has experienced a sharp rise in the demand for premium smartphones in recent years. Apple, Inc. has been dominating the premium smartphone segment in India for the last few years. Interestingly, the shipments of made-in-India iPhones grew a strong 65% YoY by volume and 162% YoY by value.

The Indian smartphone market is highly competitive, with several players vying for market share. The overall "Make in India" smartphone shipments declined by 3% year-on-year in 2022 to reach 188 million units, largely due to lower demand due to macroeconomic headwinds in the second half of 2022.

Surprisingly, the fourth quarter of the year, which is typically the most promising for smartphone OEMs, ended up being the worst quarter in 2022. As a result, India-made smartphone shipments noticeably fell 19% YoY in Q4 2022. The decline was largely caused by the disappointing sales of particularly the entry-tier and mid-tier segments.

S Mohini Ratna, Editor, VARINDIA