Top News

Growth of Android Phone Exports

India's Android phone exports are gaining momentum, mirroring the recent success of Apple exports. The increase in shipments to the United States is largely attributed to favorable policies from the Trump Administration and the Indian government's initiatives, including Production Linked Incentive schemes.

According to recent data from a research firm, Motorola, owned by Lenovo, exported approximately 1.6 million Android smartphones from India in the first five months of 2025, with nearly all of these devices heading to the US. Motorola collaborates with Dixon Technologies, an Indian contract manufacturer, to produce these phones. Previously, the majority of Motorola's exports to the US came from China, which is now facing a 55% tariff, compared to a 26% tariff on Indian exports. Additionally, smartphones have been temporarily exempted from reciprocal tariffs following concerns over these trade policies.

Samsung and Other Brands Join the Export Surge

Samsung, along with other manufacturers exporting smartphones to the US from India, shipped around 954,000 units between January and May 2025, a significant increase from 645,000 units during the same period the previous year. The US imposes a 46% tariff on smartphones from Vietnam, which has been a key export hub for Samsung, but these tariffs are currently on a 90-day pause as Vietnam negotiates a trade agreement.

Despite the growth in Android phone exports from companies like Samsung and Motorola, Apple remains the dominant player in smartphone exports from India to the US.

Impact of the PLI Scheme on Exports

The Indian government is actively promoting smartphone exports to regions like Africa and the UAE, aiming to establish the country as a global manufacturing hub. This initiative is bolstered by the Production Linked Incentive scheme, which has benefited manufacturers such as Dixon, Samsung, and Foxconn, Apple's manufacturing partner.

In the January to May 2025 period, smartphone exports from India surpassed 35 million units, with Apple contributing 20.5 million of these, 80% of which were destined for the US. In 2024, total exports reached around 60 million units, with Apple accounting for half, while Samsung and Motorola were also significant contributors.

Samsung's Export Performance

Data from the research firm indicates that Samsung, which produces devices both independently and through Dixon, is on track to meet or exceed its export targets for 2024. By May 2025, Samsung had already exported 11.4 million smartphones, nearing its previous year's total of 25.3 million.

While Samsung is currently leading in exports, its growth has plateaued due to shifting market dynamics influenced by tariff uncertainties. Other brands, including Lenovo's Motorola, Infinix, Tecno, and iTEL, are also increasing their export volumes. Vivo has also begun exporting smaller quantities, with 250,000 units shipped primarily to Thailand and Malaysia by May this year.

Challenges for Chinese Brands

Market analysts have noted that Chinese brands face significant challenges in exporting from India compared to Apple and Samsung. The profit margins for mobile phone manufacturing in India are relatively low, around 2-3%, while Chinese brands benefit from higher margins due to export incentives in their home country.

---