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India’s smartphone exports surpassed China as the top source of smartphones imported into the United States, representing a significant change in the international technology supply chain. India contributed 44% of the US smartphone imports in Q2 2025, up significantly from only 13% at the same time last year.
Conversely, China's percentage slipped to 25%, from 61% in Q2 2024, while Vietnam (30%) also surpassed the old manufacturing titan.
The boom is primarily owed to Apple, which has stepped up its ‘China Plus One’ strategy by moving a significant amount of its iPhone manufacturing to India.
Apple currently accounts for nearly 70% of all smartphones shipped out of India, with the vast majority being headed for US consumers, according to Canalys. The shift is part of Apple’s bid to de-risk its supply chain in the face of continued US-China tensions.
Apple has spared no effort to promote the manufacturing industry in India with its allies and partners, such as Foxconn India and Tata Electronics, over concerns with tariffs and political upheaval due to its dependence on Chinese manufacturing facilities.
Low-end iPhone variants are in production in India, while pilot production for the higher-end versions, such as the iPhone 16 Pro, is already underway. On the other hand, the high-end models still prefer to remain dependent on China's advanced infrastructure because of better manufacturing yields and efficiency.
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India’s smartphone exports totaled $7 billion in Q2 2025, a 40% year-on-year increase, while shipment volumes expanded by a staggering 240%, Canalys reports. Though the growth was sharp, total smartphone shipments to the US increased just 1% in the same quarter, indicating weak demand in an uncertain economic climate.
The Samsung shift recorded a 38% increase in exports to America from India, led mainly by its Galaxy A-series. Motorola has also started retooling some of its production lines in India, though the two companies continue to depend considerably on Chinese operations for high-volume production.
India-based electronics suppliers such as China’s Agilian Technology are also expanding their facilities in India, though manufacturing efficiency remains behind China.
India has momentum but also faces challenges. US President Donald Trump’s trade policies, such as a suspended 26% tariff on Indian smartphone imports (effective Aug 1), may complicate things.
Nevertheless, with increasing investments and global companies betting big, India is well on track to becoming a manufacturing hub for premium smartphones.
