‘Made in India’ smartphone sales grew 8 per cent year-on-year (y-o-y) in calendar year (CY) 2025, driven by a 28 per cent y-o-y surge in exports and a 1 per cent y-o-y growth in domestic sell-in, said a Counterpoint Research report on Thursday.

The iPhone maker Foxconn Hon Hai emerged as the key beneficiary with a 48 per cent y-o-y growth in its exports, driven by strong Apple shipments, it said, adding that Tata Electronics, also a key assembler of Apple devices, further contributed to this export surge. Samsung’s in-house production saw an uptick in its export contribution as well, recording a 4 per cent y-o-y growth, it said.

According to the market research firm’s ‘Make in India’ tracker, exports accounted for around one-third of all smartphones manufactured in India.

“Exports are becoming increasingly central not only for India-based smartphone electronics manufacturing services (EMS) players but also for the country’s broader export strategy. Electronics grew to become the third largest export category in 2025, driven largely by smartphones, and is on track to become the second largest category in 2026,” Tarun Pathak, Research Director at Counterpoint Research, said.

The government’s recognition of this sector’s growing importance is evident in the SEZ reforms notified last year, budgetary support and reforms announced in this year’s Budget, and the most recent FDI relaxations, he said.

“However, near-term headwinds such as disruptions due to the US-Iran war could impact logistics, while sustained increases in memory prices may create demand-side pressures over the longer term,” Pathak added.

Elaborating further, the report said, Dixon Technologies grew by 89 per cent y-o-y owing to increased orders from Motorola, realme and Xiaomi. Vivo’s strong performance in India, coupled with its decision to outsource production beyond its in-house facility, has also led to a significant surge in phones manufactured by Bhagwati Products Limited (BPL), establishing it as one of the top five smartphone manufacturers in India. Orders from Oppo and realme further contributed to BPL’s growth.

“Domestic EMS players continue to expand even as the first phase of the PLI scheme nears completion. This has been possible due to exports and sustained premiumisation in the domestic market. Players beyond the top five are expected to play a more significant role in 2026 as OEMs diversify their partnerships,” Prachir Singh, Senior Research Analyst, Counterpoint Research, said.

Having said that, he also added that rising memory prices will be a key challenge, especially as the smartphone market is projected to decline this year, impacting toplines.

The growth of India’s component ecosystem, supported by government initiatives such as the Electronics Component Manufacturing Scheme (ECMS), will be crucial in increasing domestic value addition. Besides, faster clearances for joint ventures under Press Note 3 will be vital in accelerating technology transfer, Singh said.

Diversification beyond smartphones into tablets and laptops will be key to tackling these headwinds, while India’s nascent exports in these segments present a longer-term opportunity. Going upstream to develop a robust component ecosystem is another avenue, and several manufacturers have already taken steps in this direction through joint ventures covering displays, camera modules and mechanics.

Government support in the form of faster JV approvals, alongside exploration of a second phase of the smartphone PLI scheme, one designed with a sharper focus on sustaining export momentum, will be crucial in ensuring India consolidates its position as a global smartphone manufacturing hub, Singh added.

Published on April 23, 2026