Latest news with #PrachirSingh
Time of India
3 days ago
- Business
- Time of India
Apple, Samsung to help India buck global smartphone manufacturing downturn in 2025: Counterpoint
NEW DELHI: India is expected to capture a 20% share of the global smartphone manufacturing output in 2025, fuelled by export demand from Apple and Samsung and and may buck the downturn in the overall market, Counterpoint Research said in a report released Tuesday. 'India is set to be the big winner in 2025. The country is expected to record double-digit percentage growth during the year to capture a 20% share of the global output,' the research firm said, adding that Vietnam, also a global manufacturing export hub, will also see strong growth driven by Samsung and Motorola. Prachir Singh, a senior analyst with Counterpoint Research, said that ongoing investments from global electronics manufacturing services (EMS) firms and active participation from domestic firms have significantly improved India's homegrown manufacturing capabilities, making the country well-suited to meet higher production demands. 'Meanwhile, India's overall manufacturing ecosystem is continuously growing, and local manufacturing is consistently improving, both in terms of yield and complexity,' Singh said. The Donald Trump administration has imposed a 10% baseline tariff on all countries, including India, with China also imposing reciprocal tariffs on the US. Notably, consumer electronics items, including smartphones and laptops, remain exempt from tariffs. However, Trump has threatened to impose a 25% tariff on all smartphone brands, particularly targeting Apple iPhones and Samsung handsets made outside the US, unless they are manufactured in America, the US media reported recently. Globally, smartphone manufacturing output is expected to slip 1% year-on-year in 2025 due to tariff impacts and a broader industry slowdown, following a 4% year-on-year rise in 2024, according to Counterpoint Research. China, India, and Vietnam were responsible for more than 90% of the global manufacturing output in 2024, with India leading in terms of growth. However, in 2025, manufacturing outputs from different countries are expected to show mixed performances. China will feel the impact of tariffs in 2025, which will result in declining output coupled with forecast domestic underperformance. Counterpoint Research Senior Analyst, Ivan Lam, said, '...the tariffs have hurt industry players at every level – from upstream component suppliers to downstream importers and distributors, brands to manufacturers. Consequently, brand owners have no choice but to move out of China and allocate more production capacity and output in other countries.' Lam added that India and Vietnam are expected to emerge as winners, with the latter region being closer to China and having a mature contract manufacturing and export sector for consumer electronics. 'If Apple really produced an iPhone in a US factory, considering that everything is not in place yet, my estimate is that the price will go up by at least 15%-20%, i.e., $150-$200. We believe this cost increase will be mostly due to the cost delta of labor, factories' amortised capex, and logistics.'said Neil Shah, vice president at Counterpoint Research. The research firm pointed out that shifting supply chains requires significant, concerted effort, capital, and time, and noted that China, India, and Vietnam have taken over 10 years to build and achieve their current capabilities and capacities. Recently, the agency revised down its 2025 global smartphone shipment growth forecast to 1.9% year-on-year from the previous 4.2% year-on-year, in light of the renewed uncertainties surrounding US tariffs. However, most regions will still likely see growth, except North America and China.
New Indian Express
01-05-2025
- Business
- New Indian Express
Smartphone market shifts toward ultra-premium segment, grows 15% in Q1 2025
India's smartphone market is increasingly moving towards the ultra-premium segment, registering a 15% year-on-year growth in the first quarter of 2025. According to a report by Counterpoint Research, the average selling price of smartphones has registered a compound annual growth rate of 11% since the onset of the Covid pandemic. This trend reflects Indian consumers' willingness to spend more on premium devices priced above `45,000, with leading brands like Apple and Samsung seeing a surge in demand. The report attributes this shift to improved affordability and the expansion of financing options, which have made high-end smartphones more accessible to a broader consumer base. The increasing demand for premium devices signals a broader change in consumer behaviour, with more Indian buyers seeking advanced features, cutting-edge technologies, and better overall value. As a result, Apple recorded a 29% year-on-year growth in Q1 2025, achieving its highest-ever first-quarter shipment volume in India. The brand also led the market in terms of value, reinforcing its dominance in the ultra-premium segment. Samsung secured the second spot, supported by multiple launches across various price segments. The Galaxy S25 Ultra series stood out as a key contributor, driving the S series' highest-ever share within Samsung's premium portfolio. 'In Q1 2025, India's smartphone market shifted its focus towards preparing for more sustainable and structured growth. Key brands, dealing with high inventory levels, prioritised clearing excess stock to stabilise operations and set a stronger foundation for the remainder of the year. Despite this inventory adjustment, consumer demand for ultra-premium products remained strong,' said Prachir Singh, senior research analyst at Counterpoint.
The Print
01-05-2025
- Business
- The Print
India's smartphone market set to grow over favorable economic outlook, global interest in Indian manufacturing: Report
The central government has been aggressively promoting indigenous manufacturing of mobile phones. It also provides incentives to the manufacturers to set up shops in India. New Delhi [India], May 1 (ANI): India's smartphone market is expected to grow at a low single-digit rate this year, driven by a favorable economic outlook and increasing global interest in Indian manufacturing, market intelligence research firm Counterpoint Research asserted. Lower tariffs compared to China and Vietnam are positioning 'Made in India' devices as a more cost-effective option for US importers, while the potential for enhanced bilateral trade between the US and India could further strengthen the country's appeal as a global smartphone manufacturing hub, the research firm said in a report. In the first quarter of 2025, India's smartphone shipments, however, declined – by 7 per cent year-on-year, according to the latest research from Counterpoint's Monthly India Smartphone Tracker. The research firm noted that high inventory levels impacted shipments during the first quarter. Besides, there was a 26 per cent drop in the number of new launches. Senior Research Analyst Prachir Singh said, 'In Q1 2025, India's smartphone market shifted its focus towards preparing for more sustainable and structured growth. Key brands, dealing with high inventory levels, prioritized clearing excess stock to stabilize operations and set a stronger foundation for the remainder of the year. Despite this inventory adjustment, consumer demand for ultra-premium products remained strong.' In the January-March 2025 quarter, the ultra-premium segment (>Rs 45,000) saw 15 per cent year-on-year growth, while the average selling price (ASP) increased at an 11 per cent CAGR post-Covid, highlighting a shift toward premium devices. 'This continued premiumization trend was further supported by growing affordability and expanding financing options, which made high-end devices accessible to a broader consumer base,' Singh said. Singh added, 'However, despite low inflation and government efforts to push spending, consumer sentiment remained cautious, especially in the budget segment.' 5G smartphones captured a record-high share of 87 per cent in total shipments in Q1 2025. Remarkably, the sub-Rs 10,000 segment witnessed an exponential surge in 5G adoption, with its four-digit year-on-year growth highlighting the accelerated diffusion of 5G into the mass-market entry-level segment. Offline channels remained strong during the quarter, accounting for 65 per cent of the overall market. Brands ramped up in-store promotions and regional outreach, especially in Tier 2 and Tier 3 cities, Counterpoint Research noted in the report. The online share was steady at 35 per cent. (ANI) This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
Times of Oman
01-05-2025
- Business
- Times of Oman
India's smartphone market set to grow over favorable economic outlook, global interest in Indian manufacturing: Report
New Delhi: India's smartphone market is expected to grow at a low single-digit rate this year, driven by a favourable economic outlook and increasing global interest in Indian manufacturing, market intelligence research firm Counterpoint Research asserted. The central government has been aggressively promoting indigenous manufacturing of mobile phones. It also provides incentives to the manufacturers to set up shops in India. Lower tariffs compared to China and Vietnam are positioning 'Made in India' devices as a more cost-effective option for US importers, while the potential for enhanced bilateral trade between the US and India could further strengthen the country's appeal as a global smartphone manufacturing hub, the research firm said in a report. In the first quarter of 2025, India's smartphone shipments, however, declined - by 7 per cent year-on-year, according to the latest research from Counterpoint's Monthly India Smartphone Tracker. The research firm noted that high inventory levels impacted shipments during the first quarter. Besides, there was a 26 per cent drop in the number of new launches. Senior Research Analyst Prachir Singh said, "In Q1 2025, India's smartphone market shifted its focus towards preparing for more sustainable and structured growth. Key brands, dealing with high inventory levels, prioritized clearing excess stock to stabilize operations and set a stronger foundation for the remainder of the year. Despite this inventory adjustment, consumer demand for ultra-premium products remained strong." In the January-March 2025 quarter, the ultra-premium segment (>Rs 45,000) saw 15 per cent year-on-year growth, while the average selling price (ASP) increased at an 11 per cent CAGR post-Covid, highlighting a shift toward premium devices. "This continued premiumization trend was further supported by growing affordability and expanding financing options, which made high-end devices accessible to a broader consumer base," Singh said. Singh added, "However, despite low inflation and government efforts to push spending, consumer sentiment remained cautious, especially in the budget segment." 5G smartphones captured a record-high share of 87 per cent in total shipments in Q1 2025. Remarkably, the sub-Rs 10,000 segment witnessed an exponential surge in 5G adoption, with its four-digit year-on-year growth highlighting the accelerated diffusion of 5G into the mass-market entry-level segment. Offline channels remained strong during the quarter, accounting for 65 per cent of the overall market. Brands ramped up in-store promotions and regional outreach, especially in Tier 2 and Tier 3 cities, Counterpoint Research noted in the report. The online share was steady at 35 per cent.
