Samsung has emerged as the leading producer of India-assembled smartphones, outpacing Apple in both volume and local value addition, according to recent industry reports. This development highlights the shifting dynamics of India’s rapidly growing smartphone manufacturing sector, as global giants vie for dominance in a market that is both a major consumer base and a critical production hub.
Samsung’s Lead in Local Assembly:
A new report by S&P Global reveals that Samsung’s share of global final assembly volume of smartphones in India reached 25% in 2024, significantly higher than Apple’s 15% during the same period. This marks a clear lead for the South Korean electronics giant in terms of the sheer number of devices assembled within Indian borders. While Apple has made headlines for its aggressive export strategy and higher-value devices, Samsung’s focus on local assembly has given it a distinct advantage in volume.
Samsung’s strategy has been to localize not just assembly, but also the production of key components. The company manufactures displays, printed circuit boards, batteries, and camera modules in India, which has helped it achieve a higher local value addition—estimated between 25% and 30% of the retail price of its smartphones. In contrast, Apple’s local value addition is estimated at just 6% to 8%, as the company continues to import many high-value components and focuses on assembling select models in India.
This local manufacturing push by Samsung predates the Indian government’s production-linked incentive (PLI) scheme, allowing the company to build a strong supply chain ecosystem over several years. As a result, Samsung has been able to respond more quickly to shifts in demand and policy, maintaining its lead in both assembly volume and local value creation.
Apple’s Focus on Exports and Premium Segment:
Apple, for its part, has ramped up its manufacturing presence in India, particularly through partnerships with suppliers like Foxconn. The company has made significant progress in assembling the latest iPhone models domestically, with estimates suggesting that a quarter of all iPhones could be made outside China by 2025, most likely in India. However, Apple’s primary focus remains on the premium segment and on exporting high-value devices to global markets.
Despite trailing Samsung in assembly volume, Apple has achieved remarkable growth in India. The company recorded its highest-ever quarterly shipments in 2023, crossing the 10-million-unit mark for the first time and capturing the top position in revenue for the year. Apple’s brand value, aspirational appeal, and the opening of its first retail stores in India have contributed to this momentum. Still, the company’s local value addition remains limited compared to Samsung, as it continues to import displays and other critical components.
Apple’s higher average selling price (ASP) and export-oriented strategy mean that while it may not lead in volume, it commands a significant share of the value generated by India’s smartphone manufacturing sector. This approach also aligns with Apple’s global positioning as a premium brand, targeting consumers willing to pay a premium for the latest technology and design.
India’s Role as a Smartphone Manufacturing Hub:
The competition between Samsung and Apple underscores India’s growing importance as a global smartphone manufacturing hub. The Indian government’s PLI scheme and other incentives have attracted substantial investment from both companies, as well as from other major brands like Xiaomi, Vivo, and Oppo. This has led to a steady increase in local value addition, which climbed to 16% in 2023 across the industry.
Samsung’s early investment in localizing its supply chain has allowed it to benefit more from these incentives, while Apple continues to expand its manufacturing footprint and deepen its partnerships with local suppliers. As geopolitical tensions push global brands to diversify their production bases away from China, India is poised to play an even larger role in the global supply chain for smartphones.
Industry analysts note that the next phase of growth will depend on further localization of high-value components, such as displays and advanced chipsets. Both Samsung and Apple are expected to increase their investments in India, not only to serve the domestic market but also to export to other regions.
The Battle for Market Share and Value Addition:
Samsung’s lead in India-assembled smartphone volumes highlights the effectiveness of its long-term localization strategy, while Apple’s rapid growth reflects the country’s rising demand for premium devices. As both companies continue to expand their manufacturing operations, the focus will increasingly shift to boosting local value addition and capturing a larger share of the global supply chain.
With India’s smartphone market showing steady growth and the government pushing for higher domestic content, the rivalry between Samsung and Apple is set to intensify. The coming years will likely see more investments, technology transfers, and innovations aimed at making India a true global powerhouse in smartphone production.
