Mobile handset exports surge in first three quarters of FY24

With the government taking up mobile handset manufacturing as a focal point in its effort to emerge as a manufacturing hub as a second pole as opposed to China, mobile device exports have taken off spectacularly. In the nine months between April and December 2023, the export of these items have risen to $10.5 billion (approximately Rs 87,150 crore), the Business Standard has reported.

According to industry body ICEA, with a full quarter to go, the tally for FY24 could easily reach the $14-15 billion mark (Rs 121,800-124,000 crore). This figure would be far higher than the $11.1 billion achieved in the last financial year.

If one disaggregates the figure, iPhone exports have accounted for the biggest fraction or $7 billion in the first nine months. In the entire FY23, iPhones worth $7.3 billion, were exported and this year exports have reached almost the same figure.

As the exports swelled more and more phones were shipped to the US, Europe, and vast regions of Asia in the first three quarters of the current financial year. Exports to these regions have risen by 42% compared to the same period in FY23.

The highest exports for a single month was achieved in December 2023 when phones worth $1.38 billion were sold abroad.

Incidentally, the first three quarters of FY24 is the first year when exports have surpassed the $1 billion mark in six of the nine months. In comparison, the first nine months of FY23 could record that achievement only two months.

In a stroke of luck, the rising tide of exports have come against the backdrop of the visit of US Trade Representative Katherine Tai’s visit to New Delhi for the Trade Policy Dialogue. The meeting will focus on exports and supply chain resilience between India and the US among other issues.

Mobile handset production and exports have also done justice to the smart-phone production-linked incentive (PLI) scheme was launched in 2020. The consistency in production that provided a driving motive for the PLI scheme was first achieved in FY24.

What is significant is that three vendors of Apple have started working full steam in India. These are Foxconn, Pegatron, and Wistron, with the Tatas joining the bandwagon by taking over the last-named firm.

Analysts expect iPhones to account for 65-70% of the total exports at the end of FY24. This is a big jump from the 45% share it had in FY23.

Disaggregating the exports to the level of manufacturers, Taiwanese giant Foxconn accounted for the biggest chunk of iPhone exports. Its shipments abroad jumped about 2.5 times in the first three quarters of FY24 compared to the same period in FY23. Pegatron achieved above 100% rise in exports compared to the same period last year.