India’s mobile phone exports surpassed a record $20.4 billion in calendar 2024 buoyed by robust overseas shipments by Apple and Samsung.
Exports by the world’s second-largest smartphone producer surged 44% last year from $14.2 billion in 2023, showed industry data. Record overseas shipments of mobile phones mark an exception in India’s overall exports performance across sectors which remained flat last year. “This incredible achievement (of surpassing $20 billion in mobile exports for the first time) has come within three years of the launch of the production linked incentive (PLI) scheme in 2021,” said an official.
Apple led India’s robust export performance with a 65% share of total overseas shipments. Samsung contributed 20% with 15% coming from Indian firms and some re-exports of mobile handsets.
Media reported in January 13 edition about Apple recording $12.8 billion worth of smartphone exports in 2024. Samsung contributed nearly $4 billion.
Among Apple’s vendors in India, Foxconn contributed 35%, Tata Electronics 19% and Pegatron 11% of total iPhone production. All three vendors are participants in the smartphone PLI scheme. A closer review of smartphone exports showed exports rose every month in calendar 2024 compared to a year earlier. Also, highest exports in both the years happened in the December quarter, marked by large shipments to the US, Europe and Japan to meet festive demand including Thanksgiving, Christmas and New Year.
Exports tend to slow down in the September quarter. During this period, factories in India, including the three iPhone plants, either undertake transitioning of their factories and machinery for making new models-usually launched in September every year-or stocking supplies for the domestic market in preparation of national festivals such as Dussehra and Diwali on one hand, and those in western and southern India such as Ganesh Chaturthi and Onam, respectively.
Consistent surge in mobile phone exports have propelled electronics to the third position in India’s exports basket. Engineering goods and petroleum products took the top two places. The mobile phone industry has generated nearly 300,000 direct jobs and 600,000 indirect jobs since the launch of the PLI scheme. It has also become the largest employment generator and skilling source for women in mid-skilled, blue-collared jobs.
The standout success story of the scheme has been the Apple ecosystem. The Cupertino-based giant reached 15-20% local value addition depending on the model, and its domestic production surged to $17.5 billion in 2024.