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[News] China Lost 180 Million Orders from the Rise of India’s Mobile Phones Manufacturing
Source to China Times, as India continues to solidify its position in the global mobile phone manufacturing supply chain, industry analysts predict significant shifts in production dynamics. Apple, for instance, is expected to move 25% of its production to India by 2025, in addition to Chinese brands like Xiaomi, OPPO, and vivo, which have already established manufacturing operations in the country. This trend has led to a scenario where India has substantially reduced its reliance on importing mobile phones from China, posing a substantial challenge to Chinese smartphone manufacturers and potentially resulting in the loss of annual orders for up to 180 million devices.
TrendForce believes that while Apple has such plans in place, the actual execution and achievement of these goals may face challenges.
The typical process of an iPhone involves design work at Apple’s headquarters in the United States, the use of main chips from American chip manufacturers and foundry services from TSMC, key components supplied by companies in Japan and South Korea, and the provision of remaining parts by Chinese manufacturers. The final assembly takes place at Foxconn’s factory in Zhengzhou, China, before the phones are air-shipped to destinations worldwide.
Since September of the previous year, an increasing number of consumers have noticed the label “Assembled in India” on the packaging of their iPhone 14 devices. This indicates that a growing proportion of Apple’s phones are being produced in India. Apple’s plan to shift 25% of its production to India by 2025 aligns with this trend.
Meanwhile, Chinese smartphone manufacturers such as Xiaomi, OPPO, and vivo are also actively manufacturing in India, and Samsung currently produces all of its flagship phones in the country. These developments are reshaping the landscape of mobile phone trade between China and India. In 2014, China exported a staggering 180 million phones to India annually. However, as India’s mobile manufacturing ecosystem matures, its reliance on importing complete phones from China has dwindled.
Data from the Cellular Operators Association of India (COAI) reveals that, following Indian Prime Minister Modi’s “Make in India” push in 2015, India’s share of globally manufactured phones surged to 11%, surpassing Vietnam and making it the second-largest mobile phone manufacturing country after China. Additionally, statistics show that from 2014 to 2022, India’s cumulative mobile phone production exceeded 2 billion units, with a CAGR growth rate of 23%. (Image credit: Apple)
