SUMMARY
Apple accounted for 49% of the country’s 12 Mn smartphone shipments in Q2 2023, while Samsung’s share fell to 45%
The iPhone maker had already pipped Samsung for the top spot in smartphone exports in terms of value in the first half of 2023
Apple has been rapidly increasing its production capabilities in India over the past few quarters via its contract manufacturers
Apple has surged ahead of Samsung in smartphone exports from India, accounting for 49% of the country’s 12 Mn smartphone shipments in the second quarter of 2023 (Q2 2023).
Meanwhile, Samsung accounted for 45% of smartphone shipments in the June quarter, according to an ET report. Apple’s share of exports grew from 9% of around 8 Mn smartphones in Q2 2022 to almost half the total smartphone exports in Q2 2023, according to the report.
In the first half of 2023, Apple had already surpassed Samsung to become the leader in smartphone exports in terms of value. The trend can be attributed to Apple’s presence in the premium and super-premium segments, while Samsung offers products across all ranges.
Samsung and other Android smartphones have become caught up in the shirking global demand for smartphones, which has hit Android phone makers the worst. An industry executive told the publication that this slump has led to a reduction in export volumes for these brands in India.
The drop in Samsung’s share of export volumes from India, from a dominating 84% in Q2 2022 to 45% in Q2 2023, shows a major shift in the dynamics of the smartphone export market.
Apple Betting Big On Manufacturing In India
For its part, Apple has been rapidly increasing its production capabilities in India over the past few quarters via its contract manufacturers. Foxconn, Wistron and Pegatron have all invested heavily in India to scale production of iPhones and start manufacturing other Apple products in the country.
The three contract manufacturers have also benefitted from the Indian government’s production-linked incentive (PLI) scheme for smartphone manufacturing, introduced in 2021.
The report added that Wistron and Foxconn have also submitted applications for incentives after meeting the required incremental production targets. Foxconn has also initiated the production of the latest iPhone 15 at its Chennai manufacturing facility.
Earlier this month, a Foxconn representative said it would double its India employment, investment and business size in one year.
The comment came a month after Hon Hai Technology Group (Foxconn) chairman and CEO Young Liu indicated that the company might invest several billions of dollars in India if it gets to implement its plans completely.
During the company’s second-quarter earnings call, Liu noted that Foxconn’s Indian operations generate nearly $10 Bn annually.
