India is set to become a major player in global smartphone manufacturing by 2025. While global smartphone production is expected to decline slightly by 1% following a 4% growth in 2024, India’s output is projected to grow rapidly, capturing a record 20% share of the global market. This surge is primarily driven by strong export demand from leading brands such as Apple and Samsung, according to a recent report by Counterpoint Research.
In 2024, China, India, and Vietnam collectively ed for over 90% of global smartphone production, with India experiencing the fastest growth. However, performance across these countries is expected to vary in 2025, with China likely to see a decline in output due to tariffs and softer domestic demand.
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The shift of smartphone manufacturing away from China has accelerated since the COVID-19 pandemic. Tariffs have disrupted the entire supply chain, prompting brands to relocate production to other countries. Ivan Lam, Senior Analyst at Counterpoint Research, explains, “Brands have no choice but to move production out of China.”
India and Vietnam are the primary beneficiaries of this trend. India offers significant growth potential, while Vietnam benefits from its proximity to China and an established manufacturing infrastructure.
Prachir Singh, Senior Analyst at Counterpoint Research, highlights that India’s manufacturing capabilities have improved substantially over the past decade. Significant investments by global companies, along with the development of local expertise, have enabled India to meet increasing production demands.
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Moreover, India’s manufacturing ecosystem continues to strengthen, producing higher-quality and more complex products. To further bolster this growth, the Indian government recently introduced the Electronics Components Manufacturing Scheme (ECMS), which provides incentives for companies to establish manufacturing facilities within the country.