India Becomes Top U.S. Smartphone Exporter as Output Surges 240%

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India has surpassed China to become the largest exporter of smartphones to the United States, according to a new report by research firm Canalys. This shift marks a significant change in global supply chains, as companies move away from China due to ongoing trade tensions and tariff uncertainties.

As per report, 44% of smartphones assembled in India made were exported to U.S. imports in the second quarter of 2025. This is a significant jump from only 13% during the same period last year. In contrast, China’s share dropped sharply from 61% to 25%, while Vietnam accounted for 30%, overtaking China as well.

India’s sharp rise in smartphone exports is mainly fueled by Apple’s increasing investment in local manufacturing. According to Canalys analyst Sanyam Chaurasia, this marks the first occasion where India has outpaced China in sending smartphones to the U.S. market. Reports indicate that Apple plans to manufacture around 25% of its iPhones in India over the next few years, as part of its strategy to lessen reliance on Chinese production facilities.

Other global brands like Samsung and Motorola are also exploring India for assembling phones bound for the U.S., although their scale remains modest compared to Apple’s aggressive push.

Electronics manufacturers such as China-based Agilian Technology are expanding their operations into India. The company is currently upgrading a facility in India with plans to start pilot production runs, eventually scaling up to full manufacturing capacity. Despite this progress, industry experts point out that production efficiency, or yield rates, in countries like India and Vietnam still lags behind China’s more established manufacturing systems.

Although smartphone exports from India have increased, total iPhone shipments to the U.S. declined by 11% year-on-year, reaching 13.3 million units in the second quarter of 2025. On a global scale, Apple experienced a 2% drop in overall shipments, delivering 44.8 million units during the same period.

Apple’s shift to India also reflects efforts to hedge against U.S.-China tariff risks. In April, the U.S. imposed a 26% tariff on Indian imports, far lower than previous duties on China, but later paused these tariffs until August 1.

While Apple has begun assembling iPhone 16 Pro models in India, it still depends heavily on China for meeting demand for high-end models.

Source: CNBC

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