India’s share of smartphone exports to the US has increased fourfold, while the shares of China and Vietnam the top two exporters of these goods to the largest economy in the world have decreased.
India’s Smartphone Exports to US Surge, Capturing Significant Market Share
According to an analysis by the Ministry of Commerce and Industry, India’s smartphone exports to the US increased by 254.3% year over year to reach $3.53 billion in April through December of this year. This allowed India to climb to a market share of 7.76%, up from 2% during the same period last year. India is now the third-largest exporter of smartphones to the United States.
“After production of i-phones scaled up and an increase in overall (smartphone) production there has been a significant rise in our exports to the US,” an official commented.
China’s market share in the US fell to 70.9% over this nine-month period from 77.7% over the same period last year.
📱📈 India's smartphone exports to the US surged to $3.53 billion in April-December, FY24 from $998 million in the corresponding period of FY23. 🌐📈#SmartphoneExports #IndiaUSTrade #India #US #PowerCorridors pic.twitter.com/1pbNRXTNre
— POWER CORRIDORS (@power_corridors) March 19, 2024
Shifts in US Smartphone Imports Highlight India’s Growing Presence Amidst Established Competitors
From April to December of this year, US smartphone imports from the top five suppliers fell to $45.1 billion from $49.1 billion the previous year. From April to December, China exported $35.1 billion worth of smartphones to the US market, a decrease from $38.26 billion in the previous year.
Vietnam, the US’s second-largest supplier of smartphones, has seen a drop in market share from 19% to 12%. From April to December of 2023, the company shipped fewer phones—$5.47 billion compared to $9.36 billion during the same time last year.
It is a significant development that India is growing its market share in the US despite competition from established leaders in electronic manufacturing, such as China and Vietnam.
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Diverse Global Suppliers Shape US Smartphone Market Dynamics
Hong Kong and South Korea are the other two countries that export smartphones to the US. Hong Kong’s sales have decreased to $112 million from $132 million in 2022, while South Korea has also increased its sales in the US to $858 million from $432 million.
The Indian export basket began to include smartphones in 2022–2023 when shipments exceeded $10.9 billion. Exports increased by 46% year over year to reach $10.5 billion in April-December of this year, demonstrating the momentum that has continued this year.
UAE was the largest market for smartphones made in India in 2022–2023, but the US had surpassed it by May 2023. However, with $2 billion in shipments, the UAE continues to rank second. The UK, Netherlands, and Czech Republic come next.
