India has officially surpassed China as the largest exporter of smartphones to the United States, marking a pivotal shift in the global electronics supply chain. According to research firm Canalys, India accounted for 44% of U.S. smartphone imports in the second quarter of this year, a substantial rise from just 13% during the same period in 2023.
This transformation reflects a broader trend of manufacturers diversifying away from China, driven largely by geopolitical pressures and tariff-related risks. Smartphone exports from China to the U.S. have dropped sharply, falling to 25% this quarter from 61% a year ago. Vietnam, too, outpaced China, supplying 30% of U.S. smartphone imports.
A major factor behind India’s rise is Apple’s accelerated efforts to expand iPhone manufacturing in the country. The tech giant is reportedly aiming to produce around a quarter of all iPhones in India over the coming years, seeking to mitigate exposure to tariffs and trade instability.
Apple’s shift gained momentum after previous U.S. administrations threatened the company with increased tariffs on Chinese-made products and pushed for domestic production. While some Apple devices have been granted temporary tariff exemptions, uncertainties remain.
Samsung and Motorola have also taken steps to move part of their assembly operations to India, but their transitions have been more gradual and on a smaller scale compared to Apple.
Global electronics manufacturers like Agilian Technology are also reallocating capacity to India to serve the U.S. market more efficiently. The company is currently retrofitting a facility in India and expects to initiate production runs shortly. However, manufacturing efficiency remains a challenge, with yield rates in India and Vietnam trailing behind China due to less experienced labor and supply chain limitations.
While these exports do not directly reflect consumer purchases, they are widely used as indicators of market demand. Despite the spike in Indian-made smartphone shipments, total iPhone deliveries to the U.S. fell by 11% year-over-year in the second quarter, signaling broader headwinds for the smartphone industry.
Apple’s shares have declined 14% this year amid concerns over trade-related disruptions and increasing competition in both hardware and artificial intelligence. Though the company has started assembling its high-end iPhone 16 Pro models in India, it still depends heavily on China’s well-established infrastructure to meet ongoing demand for premium devices.
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