Dixon's 196% leap puts Indian firms in command of smartphone output

Led by Dixon Technologies (India), homegrown smartphone electronic manufacturing services players — once laggards in a market dominated by global giants and initially unable to qualify for incentives under the production-linked incentive (PLI) scheme for mobile devices — have captured a record 36 per cent share of total smartphone production volumes in the second quarter (April–June) of calendar year 2025. This marks a fourfold jump from 9 per cent in the same period last year, according to Counterpoint Research.

 

For the first time, Dixon has emerged as the country’s largest smartphone manufacturer by volume, overtaking Samsung, Foxconn, and Vivo.

 

Dixon’s market share rose to 22 per cent in the June 2025 quarter, up from 8 per cent a year ago — a staggering 196 per cent growth. 

 

According to industry executives, the rise of Indian players is set to hasten. With production capacity expansions underway — Dixon is building facilities to produce 70 million phones annually, while Tata Electronics’ newly operational iPhone plant has begun production after acquiring Pegatron and Wistron units — homegrown companies are expected to corner over 50 per cent of India’s 250-million-unit smartphone manufacturing market within the next two years. 

 

Apart from Dixon, Bhagwati Products, once known for making Micromax phones, has re-emerged as the new kid on the block. It grew by an astonishing 1,000 per cent, taking hold of an 8 per cent share in Q2 CY 2025 by manufacturing for Vivo — up from zero in the same quarter last year.

 

Executives credit Dixon’s rapid growth to three factors: a sharp increase in production for Lenovo-owned Motorola, which has ramped up smartphone exports from India to the US; the launch of its joint venture (JV) with Chinese electronics firm Longcheer, cleared in July, which has already started sourcing from Dixon; and rising contract manufacturing volumes for Xiaomi and Transsion Holdings, after Dixon acquired Transsion’s factory.

 

By contrast, Samsung, which held the top slot last year with a 21 per cent share, has slipped to 17 per cent in Q2 CY 2025. Analysts say this decline stems from the expiry of Samsung’s five-year PLI incentive period, forcing it to scale back export orders.

 

Foxconn Hon Hai, Apple’s iPhone maker, grew its share from 13 per cent in Q2 CY 2024 to 19 per cent this year, catapulted by ballooning iPhone exports to the US. This pushed Foxconn ahead of Samsung into second place, although its 71 per cent growth was still far slower than Dixon’s.

 

Vivo, meanwhile, saw its share fall from 14 per cent to 10 per cent over the same period. The decline is seen as transitory, as Vivo is awaiting regulatory clearance for a JV with Dixon that will manufacture phones exclusively for the Chinese company. Once approved, a large portion of Vivo’s mobile phone production will be outsourced to Indian vendors.