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India has, for the first time, surpassed China to become the largest supplier of smartphones to the United States
Apple is actively working to build an ecosystem of Indian suppliers for components used in products like iPhones, MacBooks, iPads, and AirPods
India has, for the first time, surpassed China to become the largest supplier of smartphones to the United States, according to new data from research firm Canalys. This landmark development in the June 2025 quarter comes amid Apple’s accelerated shift in manufacturing operations to India, driven by persistent trade tensions and tariff uncertainties between the US and China.
India-assembled smartphones accounted for 44% of total US imports in Q2 2025, a sharp rise from just 13% in the same period last year. In contrast, China’s share plunged to 25%, down from 61% in Q2 2024 — signaling a dramatic 240% year-on-year surge in Indian-made smartphone shipments and a significant reconfiguration of global supply chains.
“India became the leading manufacturing hub for smartphones sold in the US for the very first time in Q2 2025, largely driven by Apple’s accelerated supply chain shift to India amid an uncertain trade landscape between the US and China,” said Sanyam Chaurasia, Principal Analyst at Canalys (now part of Omdia).
Apple has played a central role in this shift. While premium iPhone 16 Pro models are still primarily manufactured in China, India has emerged as a key base for assembling and exporting base iPhone models, which are now being shipped to the US in significantly larger volumes.
The pivot is part of Apple’s broader “China Plus One” strategy, aimed at reducing dependency on Chinese manufacturing. In the first half of 2025, Apple frontloaded US-bound inventory — particularly in March — to preempt possible tariff impositions.
Other smartphone brands such as Samsung and Motorola have also increased exports from India, though their contribution remains modest compared to Apple’s.
“Motorola, similar to Apple, has its core manufacturing hub in China, whereas Samsung relies mainly on Vietnam,” Chaurasia added.
Despite these shifts, overall smartphone shipments to the US rose just 1% year-on-year in the June quarter, reflecting subdued consumer demand.
“Vendors continue to frontload devices and maintain high inventory levels to best cope with the risk of tariffs coming into play later in the year,” said Runar Bjorhovde, Senior Analyst at Canalys. “Yet, the market only grew 1%, indicating tepid demand in an increasingly pressured economic environment and a widening gap between sell-in and sell-through.”
While smartphones have so far avoided US tariffs, other consumer electronics remain vulnerable — a factor that could dampen household spending and weigh on smartphone demand in the second half of 2025.
Apple alone exported over $5 billion worth of iPhones from India in Q1 FY26 (April–June), accounting for nearly 70% of India’s total smartphone exports, according to a Moneycontrol report dated July 18. The company had exported $3 billion worth of iPhones during the same period a year earlier.
With suppliers like Foxconn and Tata Electronics scaling up operations, India’s total smartphone exports surged past $7 billion in the June quarter — a 40% increase year-on-year — further cementing its status as a critical hub for high-value smartphone manufacturing.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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