Wednesday, 29 March 2023

Shipments of iPhone made in India surged 162% in value terms

by Earn Media

India’s ongoing efforts to boost local manufacturing of iPhone devices seem to have paid off to some extent, as the locally-manufactured iPhone shipments grew 162% year-on-year by value in 2022, according to Counterpoint.

On Tuesday, the market research firm said that Apple now captures 25% of the total value of the smartphone market in India compared to 12% in 2021. The shipments of locally-made iPhone units grew 65% year-on-year in volume terms, the firm said in its latest report.

Apple’s electronics manufacturing services partners Foxconn Hon Hai and Wistron were the fastest-growing manufacturers among the top 10 electronics manufacturing services (EMS) players in India in Q4 2022. Both manufacturers additionally led the EMS landscape in value terms. Their growth was also fuelled by increasing exports from Apple, Counterpoint said.

Foxconn recently decided to invest another $500 million in its Indian business to expand its local operations. Foxconn chairman Young Liu also visited the country earlier this month and met with various political leaders and officials to establish a better connection with New Delhi. On the other hand, Wistron is reportedly looking to sell its only production plant in the country to Tata Group to let the Indian salt-to-software conglomerate start manufacturing iPhone models.

“In terms of overall exports, a volume growth of 37% [year-over-year] was witnessed. Further, the contribution of exports in the total ‘Made in India’ smartphone shipments reached the highest ever in 2022 both in volume (20%) and value terms (30%),” said Counterpoint senior research analyst Prachir Singh.

The Indian government introduced a $6.6 billion incentive program to relocate smartphone manufacturing. It has helped attract Apple’s manufacturers to start their production lines in the country to fulfill both domestic and international demand and reduce their reliance on China. Samsung has also significantly participated in the local production push by the government to earn incentives.

The decline in consumer demand due to the macroeconomic slowdown, especially in the second half of the year, has resulted in a 3% year-on-year drop in the total locally-manufactured smartphone shipments in the country. The shipments also fell 19% in the last quarter due to a dip in local demand, particularly for entry-level and mid-tier smartphones. Nonetheless, Counterpoint noted that India-made smartphone shipments in terms of value registered a 34% year-on-year growth.

Shipments of iPhone made in India surged 162% in value terms

Image Credits: Counterpoint

Oppo led the shipments of locally-manufactured smartphones in the country in 2022 with a 22% share, followed by Samsung. However, the South Korean company dominated the market of smartphone manufacturers in the country in Q4, as Oppo saw a 31% year-on-year decline in its shipments due to inventory issues in the entry-level segment, the analyst firm said. Oppo’s data comprises the shipments of Realme and OnePlus as well.

“The increasing exports from Apple, Samsung and other OEMs drove the locally manufactured shipments in 2022 and somewhat offset the impact of the local demand decline,” said Tarun Pathak, research director at Counterpoint.

Shipments of iPhone made in India surged 162% in value terms by Jagmeet Singh originally published on TechCrunch