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'Made in India' smartphone shipments grew 7 percent YoY in Q1 2022

Despite the global component chip shortage, the manufacturing ecosystem in India remained resilient.

Updated:Fri, June 17, 2022 2:35pm

By Pranav Sawant

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A few years back, most phones were made in popular manufacturing hubs out of India and then were imported into the country for use. However, in recent years, thanks to the Made in India initiative by the government, several OEMs are making phones locally in India. Owing to it, the smartphone shipments of Made in India phones have grown over several quarters. Now, as per research by the analyst firm Counterpoint Research, the Made in India smartphone shipments have increased 7 percent year-on-year (YoY) in Q1 of 2022.

Also Read:

Oppo takes the lead in 'Made in India' smartphone shipments

The smartphone shipments of devices made in India have increased 7 percent YoY reaching more than 48 million in Q1 2022. Oppo is taking the lead in shipping most locally made phones. Oppo, which comprises both Realme and OnePlus, has managed to show an increase of 21.6 percent over the previous year. Following it is Samsung with a 21.3 percent smartphone shipment share.

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"Smartphone manufacturing is increasing in India. In 2021, the shipments of 'Made in India' smartphones crossed 190 million units. The increasing smartphone demand in India as well as increasing exports are the major reason for the continued growth. Support has also come from the Indian government's various initiatives to increase local manufacturing. However, the manufacturing of feature phones declined 41 percent YoY in Q1 2022 due to falling demand for the past few quarters," said Priya Joseph of Counterpoint.

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As per the research of Counterpoint, not just the in-house manufacturing has increased but the third-party EMS (electronic manufacturing services) manufacturing has also shown stable growth. For the unversed, in-house manufacturing is basically the own manufacturing plant by the brand where it makes its own phones, while EMS manufacturing is done by third-party makers like Bharat FIH and Dixon Technologies.

The in-house manufacturing reached 58 percent in Q1 2022, while in terms of market share, the EMS manufacturing captured 42 percent. The smartphone shipment share by EMS manufacturers like Bharat FIH and Dixon Technologies reached 11.3 percent and 8.6 percent, respectively.

In terms of feature phone production, it got cut down by 41 percent YoY, but that's mainly due to low demand. As per the Counterpoint, the entire manufacturing ecosystem in India remained resilient despite the global component shortage. One of the reasons for this could be the government's Production Lined Incentives (PTL) which boosted the local manufacturing.

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