Apple surpasses Samsung in Indian smartphone exports with the rise in domestic manufacturing
By siliconindia | Saturday, 23 September 2023, 08:34:30 AM IST
Apple has achieved a significant milestone by surpassing Samsung in smartphone exports from India, accounting for 49% of the country’s total smartphone shipments in the second quarter of 2023 (Q2 2023). In contrast, Samsung accounted for 45% of smartphone shipments during the same quarter. This development highlights Apple’s rapid expansion of local manufacturing capabilities in India. Apple’s remarkable growth in smartphone exports is evident, with its share of exports increasing from 9% of approximately 8 million smartphones in Q2 2022 to nearly half of all smartphone exports in Q2 2023. Apple had already outpaced Samsung in smartphone exports by value in the first half of 2023.
This trend can be attributed to Apple’s strong presence in the premium and super-premium smartphone segments, whereas Samsung offers products across various price ranges. However, both companies have been affected by the global decline in smartphone demand, impacting Android phone manufacturers significantly. Samsung, once dominating with an 84% share of export volumes in Q2 2022, saw a significant drop to 45% in Q2 2023, marking a substantial shift in the smartphone export market dynamics.
Apple has strategically focused on expanding its production capacity in India through partnerships with contract manufacturers like Foxconn, Wistron, and Pegatron. These manufacturers have heavily invested in India to scale up iPhone production and commence manufacturing other Apple products. Apple has also benefited from the Indian government’s production-linked incentive (PLI) scheme for smartphone manufacturing, introduced in 2021.
Wistron and Foxconn have submitted incentive applications after meeting production targets, and Foxconn has initiated production of the latest iPhone 15 at its Chennai facility. In a recent announcement, Foxconn expressed its intent to double its India employment, investment, and business size within a year, signaling a substantial commitment to India’s manufacturing landscape. During a second-quarter earnings call, Hon Hai Technology Group (Foxconn) chairman and CEO Young Liu indicated the potential for several billion dollars in investments in India if their plans are fully realized. Liu noted that Foxconn’s Indian operations currently generate nearly $10 billion annually.
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