Samsung’s smartphone exports from its Indian facilities fell almost 20% year-on-year and quarter-on-quarter during April–June 2025 (FY26 Q1), dropping to around $950 million. The decline came soon after the company ceased to receive benefits under India’s Production-Linked Incentive (PLI) scheme effective April 2025.
Why the Decline?
📉 Loss of Subsidies Impact Pricing
Without PLI benefits, Samsung now faces a 10% cost disadvantage compared to Vietnam and 15% versus China, undermining its competitiveness in global export markets. <?cite>
🔍 Export Strategy Under Review
Industry insiders suggest Samsung is reevaluating its export strategy amid increased costs—similar PLI expirations facing Apple and Dixon Technologies may also lead to similar market corrections.
📊 Quick Facts at a Glance
| Metric | Details |
|---|---|
| Q1 FY26 Exports | ~$950 million |
| YoY / QoQ Decline | ~20% |
| PLI Scheme Status | Expired April 2025 |
| Cost Disadvantage (Est.) | ~10% vs Vietnam, ~15% vs China |
| Broader Trend | Apple & Dixon may also be affected |
🌐 Broader Ecosystem Context
India’s electronics exports overall surged 47% YoY in Q1 FY26, driven by brands like Apple, Samsung, and Dixon benefiting from PLI schemes—but Samsung is now an exception without subsidy support
While India solidified its position as the third-largest mobile exporter with a $20.5 billion run rate, the fading incentive tail-wind could shift momentum unless export measures or policy extensions materialize.
✅ What’s Next?
- Policy Outlook: Industry stakeholders are urging government extensions or modifications to the scheme, citing previous PLI delays caused by COVID disruptions. However, an extension remains under legal review. Moneycontrol
- Competitive Shifts: Samsung may explore expanding production for export to other India-based units. Meanwhile, Apple and Dixon face a similar timeline ending March 2026.
🧭 Takeaway
Samsung’s 20% export decline in FY26 Q1 underscores the critical role of incentive schemes in shaping global electronics trade flows. As cost differentials widen post-PLI, companies may pivot or seek alternate sourcing to remain competitive. The sustainability of India’s export surge hinges on the next phase of policy support, export reorientation, and manufacturing resilience.
