India Surpasses China as Top Smartphone Supplier to US

In a landmark development for the global tech industry, India has officially overtaken China as the top exporter of smartphones to the United States for the first time. According to fresh data released by Canalys, 44% of smartphones shipped to the U.S. in Q2 2025 were assembled in India—a substantial leap from just 13% during the same period in 2024. This surge is largely attributed to Apple’s expanding manufacturing operations in India, as the company diversifies its supply chain amid rising trade tensions between the U.S. and China.

A Shift in Global Manufacturing Dynamics

The decline in China’s dominance has been dramatic. Chinese-made smartphones now make up only 25% of U.S. imports, down from over 60% a year earlier. Meanwhile, India’s shipments to the U.S. jumped by an eye-popping 240% year-over-year, reflecting a strategic global pivot by manufacturers eager to de-risk from geopolitical volatility.

Apple has been central to this transformation. As part of its long-term “China Plus One” strategy, the tech giant has significantly ramped up iPhone production in India. This move aims to reduce its reliance on China while ensuring a steady supply of devices to the U.S. market in the face of unpredictable tariffs and diplomatic friction.

According to Canalys Principal Analyst Sanyam Chaurasia, “India became the leading manufacturing hub for smartphones sold in the U.S. for the very first time in Q2 2025, largely driven by Apple’s accelerated supply chain shift.”

Apple Leads the Charge—But Keeps a Foot in China

While Apple has shifted production of base iPhone models to India, it still leans on Chinese factories to meet the scale required for high-end models like the iPhone 16 Pro. However, the momentum is clearly shifting. In Q1 FY26 (April–June 2025), nearly 70% of India’s smartphone exports were iPhones, signaling Apple’s growing reliance on its Indian manufacturing partners. This shift is supported by major suppliers such as Foxconn and Tata Electronics, both of which are investing heavily in expanding local production capabilities.

Other Brands Follow Apple’s Lead

Apple may be spearheading the change, but it is not alone. Samsung and Motorola are also relocating portions of their U.S.-oriented smartphone production to India. Samsung, for example, boosted its exports to the U.S. from India by 38% during Q2 2025, mainly due to strong demand for its Galaxy A-series phones. Motorola, while still heavily invested in Chinese production, has begun shifting select assembly operations to India as well, though at a smaller scale compared to Apple.

Despite these shifts in manufacturing locations, total smartphone imports into the U.S. grew by only 1% year-on-year in Q2 2025. Analysts say this tepid growth reflects economic pressure and cautious consumer demand. Runar Bjorhovde of Canalys explained, “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. Yet, the market only grew 1 per cent, indicating tepid demand in an increasingly pressured economic environment.”

India’s Growing Role in the Global Smartphone Supply Chain

India’s position as a major player in the global electronics supply chain is being reinforced by these trends. The country exported $7 billion worth of smartphones in Q2 2025 alone, marking a 40% increase compared to the previous year. This growth has been fueled not just by Apple’s presence but also by India’s favorable business policies, government-backed production incentives, and a skilled labor force.

As more manufacturers diversify their operations away from China, India stands out as a key alternative, offering scale, talent, and logistical advantages. With ongoing investments from both domestic and international players, India’s prominence as a smartphone manufacturing hub is likely to expand further—especially if trade tensions and tariff threats between the U.S. and China persist.

In essence, this shift signals more than just a change in shipping routes; it represents a fundamental reordering of the global tech manufacturing landscape, with India now firmly at its center.