Key Points
- India has surpassed China as the number one exporter of smartphones to the United States for the first time.
- India’s share of U.S. smartphone imports jumped from 13% to 44% in just one year.
- The primary reason for the shift is the ongoing U.S.-China trade war and the threat of tariffs.
- China’s share of smartphone exports to the U.S. has fallen dramatically, from 61% to 25%.
In a major shift for global manufacturing, India has surpassed China to become the top exporter of smartphones to the United States. According to research firm Canalys, the move reflects how companies are shifting their supply chains away from China to avoid U.S. tariffs and trade uncertainty.
In the second quarter of this year, smartphones assembled in India accounted for 44% of all U.S. imports, a significant increase from 13% in the same period last year. Meanwhile, China’s share plummeted from 61% down to just 25%. Even Vietnam is now exporting more smartphones to the U.S. than China.
The main driver of this change is Apple. The tech giant has been rapidly moving its iPhone production to India to shield itself from the ongoing U.S.-China trade war. President Donald Trump has repeatedly threatened Apple with tariffs and urged the company to move its manufacturing. While other companies, such as Samsung and Motorola, are also shifting to India, Apple’s move is by far the largest and fastest.
This shift focuses on the “last-mile assembly” of the phones. While many components are still manufactured elsewhere, the final product is assembled in India before being shipped to the U.S.
However, Apple still relies heavily on China’s more mature manufacturing infrastructure for its high-end models, like the iPhone 16 Pro. The full transition will likely take several more years.
