For the first time, India has overtaken China to become the largest exporter of smartphones to the United States. According to a report by research firm Canalys, India-made smartphones accounted for 44% of US imports in the second quarter of 2025, a significant rise from just 13% during the same period last year. Meanwhile, China’s share dropped sharply to 25%, down from 61%, placing it third behind Vietnam.
This shift is mainly driven by Apple’s decision to move more of its manufacturing to India due to ongoing trade tensions between the US and China. Apple has been expanding its production capacity in India for several years and now exports most of these devices to the US. Apple CEO Tim Cook even stated earlier this year that most iPhones sold in the US will soon come from India.
Trade policies have played a major role in this change. Although smartphones made in China are exempt from the harshest tariffs, they still face a minimum 20% tax. Earlier this year, US President Donald Trump imposed a 145% overall tariff on Chinese imports, leading Beijing to respond with its own tariffs. While both countries have temporarily eased these measures, companies have started looking for alternative manufacturing hubs.
This move away from China is part of a broader global trend. In recent years, many firms have diversified their supply chains due to rising geopolitical tensions and disruptions during the pandemic. India and Vietnam have emerged as strong alternatives, attracting major tech companies.
Analysts believe that uncertainty in US-China trade negotiations has sped up this shift, and India’s growing role in smartphone manufacturing marks a significant change in global supply chains.
