Apple has given a big blow to South Korea and China. Yes, Apple has left South Korea and China behind in terms of shipments from India in the June quarter and has become the number 1 company in India. According to media reports, for the first time, Apple has left Samsung and other Chinese brand companies behind in the matter of smartphone exports from India. Apple shipped 49 percent of the total 12 million shipments in the country in the June quarter. At the same time, 45 percent of the shipping was done by South Korean company Samsung. In fact, there is a continuous increase in the growth of Apple's manufacturing in India. Due to which, Samsung, which is one of the biggest companies of South Korean country after China, is facing a big blow.
This is how Apple's exports increased
Data has shown that Apple has registered a rapid growth in export volume last year. Industry officials said its share in exports increased from just 9 per cent of about 8 million smartphones shipped in the second quarter of 2022 to almost half of total smartphone exports in the second quarter of 2023. India exported about 13 million smartphones in the March quarter this year, which fell to 12 million in the second quarter of 2023. According to data obtained by ET, exports stood at 10 million smartphones in Q1 2022 and 8 million in Q2 2022.
Help received from PLI scheme
Experts say that Apple's market belongs to the premium and super premium segment. Even after that, the company has been the largest smartphone exporter from India in terms of value in the first half of 2023. Which is quite surprising. On the other hand, Samsung has devices of all price bands. Apple's strong performance since it started manufacturing in the country in 2017 has led its three contract makers – Foxconn, Wistron and Pegatron – to produce iPhone 14 and below from the second half of 2022. These three makers are part of the PLI scheme of the Government of India for smartphone manufacturing. On the other hand, Foxconn has started manufacturing iPhone 15 at its Chennai plant, the phones being made in India are expected to be available for sale from Friday.
Decline in shipments of other brands
Experts said that amid this geopolitical tension, to reduce its dependence on China, Apple is now planning to export iPhones to India. There has been a huge decline in the exports of Samsung and other Android smartphone brands from India. Industry executives attributed this to the decline in global demand, which has particularly affected Android smartphone brands.
Big blow to Samsung
Samsung's share in export value fell from 50 percent in the first quarter of FY 2023 to 45 percent in the second quarter. The surprising thing is that in the second quarter of FY 2022, Samsung's export share was 84 percent and Samsung had complete dominance in the Indian market. Industry officials, requesting anonymity, said Samsung's weak export performance in India was also linked to Vietnam becoming a major export hub for the company. The company's factory in North Vietnam is the largest smartphone factory globally.
There may be a decline in global shipments
Meanwhile, exports of other Android brands like Xiaomi, Motorola, Vivo have declined from 10 percent in the first quarter of FY 2023 to 6 percent in the second quarter. Motorola India spokesperson said in the media that despite the decline in global shipments in the first quarter of 2023, the company has seen a steady growth in exports in 2023 with a growth of 25 percent in the first quarter compared to the previous quarter. Market researcher Counterpoint Research has predicted that global smartphone shipments are expected to decline by 6 percent to 1.15 billion units in 2023.
No comments:
Post a Comment