- NEW DELHI — As
global smartphone manufacturing output declines, India is set to be the big
winner in 2025, with output growing in double-digit percentages to reach a
record 20 per cent share of worldwide output, fuelled by export demand from Apple
and Samsung, a report showed on Tuesday.
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- Global smartphone manufacturing output is expected to slip 1
per cent (on-year) in 2025 due to tariff impacts and a broader industry
slowdown, following a 4 per cent rise in 2024, according to Counterpoint Research’s
latest global smartphone manufacturing allocation tracker.
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- China, India, and Vietnam were responsible for more than 90
per cent of the global manufacturing output in 2024, with India leading in
terms of growth.
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- However, in 2025, manufacturing outputs from different
countries are expected to show mixed performances. China will feel the impact
of tariffs in 2025, which will result in declining output coupled with forecast
domestic underperformance.
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- The global smartphone manufacturing shift has been
accelerating after the Covid-19 pandemic, but the tariffs have hurt industry
players at every level – from upstream component suppliers to downstream
importers and distributors, brands to manufacturers.
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- “Consequently, brand owners have no choice but to move out
of China and allocate more production capacity and output in other countries,”
said Counterpoint Research Senior Analyst, Ivan Lam.
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- The main winners are India, which has significant growth
potential, and Vietnam, which is relatively closer to China and has a mature
contract manufacturing and export sector for consumer electronics, Lam noted.
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- Observing the recent manufacturing growth spurt in India,
Counterpoint Research Senior Analyst, Prachir Singh, stated, “With traditional
global EMS giants continuing to invest in India and local EMS actively
participating, the country’s local manufacturing capabilities have
significantly improved and are now capable of meeting higher production demands
– after nearly a decade of refinement”.
