India overtakes China as top supplier of smartphones to the US amid shifting global supply chain

India has overtaken China for the first time to become the largest source of smartphones sold in the US, according to new data from Canalys. In the second quarter of 2025, smartphones assembled in India accounted for 44 per cent of US imports, a dramatic increase from just 13 per cent in the same period the previous year. This milestone highlights the significant shift in global manufacturing supply chains, primarily driven by Apple’s accelerated production ramp-up in India, as the company seeks to mitigate the risks of escalating trade tensions and tariffs between the US and China.

This marks a stark decline for China, which saw its share of US smartphone exports plummet to just 25 per cent in Q2 2025, down from more than 60 per cent a year ago. And a 240 per cent year-on-year increase in Indian shipments signals a significant change in the global tech landscape as smartphone makers move their production outside of China in response to heightened geopolitical risks and trade uncertainty.

Apple leads the shift with increased production in India

Apple has played a pivotal role in this shift, increasingly relying on India for iPhone production. The company’s move to ramp up manufacturing in India is part of its broader “China Plus One” strategy, which seeks to reduce dependence on China amid growing tariffs and geopolitical tensions. According to Canalys, Apple has been accelerating its plans to produce a substantial portion of its iPhones in India, especially for the US market. In Q2 2025, Apple’s increased output from India included base iPhone models, which now account for a significant share of US shipments.

“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.

Apple’s decision to move more production to India has been fuelled by the ongoing tariff concerns and the uncertainty surrounding US-China relations. Despite assembling some models, like the iPhone 16 Pro, in India, the company still relies on its Chinese facilities to meet large-scale demand for high-end models in the US. However, Apple’s rapid increase in exports from India—accounting for nearly 70 per cent of India’s smartphone exports in Q1 FY26 (April–June 2025), according to aMoneycontrolreport—is setting the stage for India to become a major global manufacturing hub for premium smartphones in the future.

Samsung and Motorola follow suit

While Apple has taken the lead in shifting its production to India, other global smartphone vendors, including Samsung and Motorola, are also beginning to move some of their US-bound production to the country. Samsung’s smartphone exports to the US from India saw a 38 per cent increase during the April to June period in 2025, largely driven by its Galaxy A-series devices. Motorola, like Apple, has a core manufacturing base in China but has started shifting some of its production to India as well. However, compared to Apple, their shifts remain modest in scale.

Despite these shifts, overall smartphone shipments to the US grew by only 1 per cent year-on-year in Q2 2025, suggesting that the market is not growing as quickly as manufacturers had hoped. Canalys analyst Runar Bjorhovde 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 solidifies its position as a key smartphone export hub

India’s rise as a critical hub for smartphone manufacturing has been solidified by its increasing role in the global supply chain. In Q2 2025, India’s total smartphone exports reached $7 billion, a 40 per cent increase from the previous year, with Apple contributing significantly to the surge. With major players like Foxconn and Tata Electronics ramping up their production capacity in India, the country is poised to become an even more dominant player in the smartphone manufacturing space in the coming years.

As the US market faces potential tariff hurdles and a slowing economy, the shift to India highlights the broader changes taking place in the global tech manufacturing ecosystem. While the future of tariffs remains uncertain, India’s rise as a key supplier to the US underscores its growing importance in the global smartphone supply chain, with the potential for continued expansion and investment from both local and international players.

(With inputs from agencies)