Competition heats up in India’s smartphone manufacturing sector as PLI winds down

New Delhi: India’s Android smartphone contract manufacturing sector is expected to see stiffer competition as the production-linked incentive (PLI) scheme for large electronics winds down, with manufacturers luring brands away from existing partners through lower assembly costs, industry executives said. Lower assembly costs have become attractive for brands seeking to offset high component prices, they said.

The end of the scheme has not triggered a pull-back from the market. Instead, brands are spreading volumes across multiple manufacturers rather than concentrating orders with a single player.