Apple has achieved a significant milestone in the Indian smartphone export landscape, surpassing Samsung for the first time in shipment volumes. A recent newspaper report revealed that during the June quarter, Apple accounted for 49 per cent of India’s total smartphone shipments, while Samsung held a 45 per cent share.
This noteworthy development underscores Apple’s rapid expansion of local manufacturing operations in India. The company has been manufacturing iPhones in India through contract manufacturers and has witnessed substantial growth in export volumes over the past year.
According to industry executives cited by the Economic Times, Apple’s share of exports has risen dramatically, progressing from a mere 9 per cent of approximately 8 million smartphones in Q2 2022 to nearly half of the total smartphone exports in Q2 2023.
India has observed some fluctuations in smartphone exports, with around 13 million units exported in the March quarter of this year, followed by a slight dip to 12 million in Q2 2023. For reference, exports stood at 10 million smartphones in Q1 2022 and 8 million in Q2 2022, based on data accessed by the Financial Daily.
In the first half of 2023, Apple has emerged as the foremost smartphone exporter from India in terms of value. This accomplishment is primarily attributed to Apple’s strong presence in the premium and super-premium market segments, while Samsung offers devices across a range of price brackets.
Apple’s impressive performance in India can be attributed to a substantial increase in production, facilitated by its contract manufacturers, namely Foxconn, Wistron, and Pegatron.
This uptick in production commenced in the latter half of 2022, coinciding with the manufacturing of iPhone 14 and earlier models. The primary focus has been to meet the surging demand in the Indian market and enhance export capabilities.
Furthermore, all three contract manufacturers—Foxconn, Wistron, and Pegatron—have benefited from the Indian government’s production-linked incentive scheme for smartphone manufacturing. This scheme has played a pivotal role in incentivizing and boosting Apple’s manufacturing operations in the country.
Both Wistron and Foxconn have submitted applications for incentives after successfully meeting the required incremental production targets. Notably, Foxconn has initiated production of the latest iPhone 15 at its Chennai facility, reinforcing Apple’s ambition to transform India into a key export hub for iPhones.
By diversifying its production and leveraging India’s manufacturing capabilities, Apple aims to reduce its dependence on China, particularly in light of ongoing geopolitical tensions.
This strategic move positions India as a significant manufacturing and export hub for iPhones, one of the company’s top-selling products worldwide.
The decline in exports by Samsung and other Android smartphone brands from India can be attributed to a global downturn in demand, which has affected these brands. This downturn has likely resulted in reduced export volumes for these brands in the Indian market.
Additionally, industry executives have noted that the first quarter of the calendar year coincides with the last quarter of the financial year, leading to a general increase in exports for brands to meet year-end targets and claim incentives under the PLI scheme. This seasonal factor contributes to higher exports in the first quarter compared to the second quarter, as reported by The Daily.
The substantial drop in Samsung’s share of export volumes from India, declining from a dominant 84 per cent in Q2 2022 to 45 per cent in Q2 2023, signifies a significant shift in the dynamics of the smartphone export market.
Several factors, including heightened competition, evolving consumer preferences, shifting market trends, and a global decline in demand for Android smartphones, may be contributing to this transformation.
from Firstpost Tech Latest News https://ift.tt/ToQgBbP
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