As the government increases its focus on exports for the electronics industry, it is concerned about Chinese mobile phone brands not exporting devices despite having about 75 per cent share in the domestic smartphone market. Citing industry experts, the report said that companies like Xiaomi, Oppo, Vivo, and Realme together account for a dominating 74 per cent share of the Indian mobile phone market in terms of volumes. However, their share of exports stands at only 14 per cent.
In terms of value, the Chinese smartphone manufacturers have a 55 per cent share in the $40 billion Indian smartphone market, largely due to the dominance of Samsung and Apple in the premium smartphone market, which cost more and thus yield more revenue despite lower sales.
Chinese smartphone companies make devices meant for export in China, and this could be the main reason for low exports. These companies make handsets in India to take care of the local demand, the ET report said.
Apple vs Chinese smartphone manufacturers
Research Director at Counterpoint Research, Tarun Pathak told The Economic Times, “For Chinese players, their strong regions are China, India, and Southeast Asia, and in all three, they have local manufacturing capabilities. So, there is less incentive to export from India.”
However, government officials are highlighting the contrast with companies such as Apple, which also makes most of its smartphones in China, but is increasing its production capacity and exports from India.
India competing with Vietnam
Vietnam has emerged as the biggest contender for India to get a larger share of the global smartphone manufacturing pie. Notably, Vietnam’s local market for smartphones is $2 billion but its exports stood at $40 billion. In comparison, the Indian local market for smartphones is around $40 billion but exports in the last financial year were just over $11 billion.
“The government has been pushing the Chinese brands to push exports, but there has hardly been any movement,” the report quoted a government official as saying. Business Standard