India has emerged as the leading source of smartphones imported into the United States, surpassing China for the first time. In the second quarter of 2025, India accounted for 44% of US smartphone imports, a substantial increase from just 13% in the same period last year. Meanwhile, China’s share of the US market fell to 25%, down from 61% in Q2 2024. Vietnam has also risen in prominence, contributing 30% of imports.
Apple’s Strategic Shift Fuels India’s Export Growth
The impressive growth of India’s smartphone exports is largely attributed to Apple, which is executing a robust “China Plus One” strategy. This initiative involves relocating a significant portion of its iPhone manufacturing to India. Currently, Apple is responsible for nearly 70% of all smartphones exported from India, with most devices earmarked for US consumers, according to data from Canalys. This shift is part of Apple’s broader strategy to mitigate risks associated with its supply chain amid ongoing tensions between the United States and China.
Apple’s commitment to Indian manufacturing involves partnerships with key allies, including Foxconn India and Tata Electronics. The company is actively producing lower-end iPhone models in India, while pilot production for higher-end models, such as the iPhone 16 Pro, has commenced. Despite this progress, Apple continues to rely on China for the production of premium devices, citing the country’s superior manufacturing infrastructure and efficiency.
India’s Smartphone Export Boom in Context
India’s smartphone exports reached $7 billion in Q2 2025, marking a remarkable 40% increase compared to the previous year. Shipment volumes soared by an astonishing 240%, as reported by Canalys. In contrast, total smartphone shipments to the United States experienced only a 1% increase during the same quarter, indicating a challenging economic environment.
Other smartphone manufacturers are also adjusting their strategies in light of India’s rising prominence. Samsung recorded a 38% increase in exports to the US from India, driven primarily by its Galaxy A-series. Similarly, Motorola has begun adapting its production lines in India, although both companies still heavily depend on Chinese facilities for high-volume production.
India is not only attracting major global brands but also witnessing the expansion of local electronics suppliers. Companies like China’s Agilian Technology are increasing their operations in India, although there are challenges regarding manufacturing efficiency compared to established Chinese counterparts.
Despite its recent successes, India faces hurdles in maintaining its position. US trade policies, particularly a suspended 26% tariff on Indian smartphone imports set to take effect on August 1, 2025, may complicate future growth. Nevertheless, with escalating investments and a commitment from global firms, India is well on its way to solidifying its status as a major manufacturing hub for premium smartphones.
