April 5, 2024
Smartphone sales have maintained a steady pace, ranging from 145 to 150 million units in FY24
The domestic market production value has seen a commendable 11% growth
Experts attribute the rise in average sale price to consumers' inclination towards premiumization, particularly fuelled by the increasing adoption of 5G phones
Apple emerges as a frontrunner among manufacturers in export figures, with outbound shipments of mobile devices expected to surpass INR 1.2 lakh crore in FY24
The Indian Cellular and Electronics Association (ICEA) has released preliminary estimates indicating a remarkable surge in the value of mobile devices produced in India, soaring to INR 4.1 lakh crore. This signifies a substantial 17% YoY increase, showcasing the robust growth trajectory of the mobile manufacturing sector.
Despite a relatively stagnant domestic sales volume, the value of mobile exports has remained buoyant. Smartphone sales have maintained a steady pace, ranging from 145 to 150 million units in FY24, with a slight uptick observed in the last quarter. The domestic market production value has seen a commendable 11% growth, increasing from INR 2.6 lakh crore in FY23 to INR 2.9 lakh crore in FY24.
Experts attribute the rise in average sale price to consumers’ inclination towards premiumization, particularly fuelled by the increasing adoption of 5G phones. This consumer trend, coupled with the export of high-end mobile phones, significantly contributes to the overall value of the sector.
Apple emerges as a frontrunner among manufacturers in export figures, with outbound shipments of mobile devices expected to surpass INR 1.2 lakh crore in FY24, marking a notable 33% increase from the previous fiscal year. Early estimates suggest that exports constituted nearly 30% of the total production value in FY24, showcasing a substantial growth from 25% in FY23.
The production-linked incentive (PLI) scheme for mobile devices, which mandates eligible players to export 60% of their production value, has evidently played a pivotal role in driving the surge in exports. Noteworthy participants in this growth story include Apple’s vendors such as Foxconn, Wistron India (now Tata Electronics), and Pegatron, along with Samsung. Although Apple’s contribution to exports has been significant, the potential from Chinese companies have not been met. Moreover, domestic companies, are yet to meet expectations.
Source: Mint