India Surpasses China as Top Smartphone Exporter to the U.S., Driven…

Team S · 2025-07-29T16:19:28.000Z

India has overtaken China to become the leading exporter of smartphones to the United States in the second quarter of 2025, marking a historic shift in global manufacturing. The surge is primarily driven by Apple Inc.’s rapid pivot to Indian production amid escalating U.S.-China trade tensions. This development highlights a broader realignment in global supply chains, with India emerging as a key hub for high-tech manufacturing. In Q2 2025, India-made smartphones accounted for 44% of U.S. smartphone imports, up from 13% a year earlier, with total export volume soaring by 240% year-over-year. China’s share, meanwhile, dropped from 61% to 25%, falling behind Vietnam, which has also gained from the supply chain shift. Apple’s “China Plus One” strategy, aimed at diversifying manufacturing away from China to reduce risks from U.S. tariffs and geopolitical uncertainties, is the primary force behind this change. India has become the largest supplier of base iPhone models to the U.S. market, with Apple assembling $22 billion worth of iPhones in India in the 12 months ending March 2025, a 60% increase from the prior year. Foxconn Technology Group’s facilities lead this effort, while Tata Group’s electronics arm, having acquired Wistron Corp and overseeing Pegatron Corp’s operations, plays a growing role. Despite this shift, Apple still relies on China for its more complex Pro models. Other manufacturers, like Samsung and Motorola, have also increased their Indian-made handset exports, though their scale is smaller compared to Apple’s. U.S. trade policies, including tariffs on foreign goods to boost domestic manufacturing, have accelerated this trend. While smartphones are exempt from the heaviest tariffs, they face a minimum 20% levy. Apple’s CEO Tim Cook has signaled a long-term commitment, stating that the majority of iPhones sold in the U.S. will soon originate from India. India’s rise aligns with its ambition to become a global electronics hub, bolstered by incentives and infrastructure improvements. Cities like Noida, near Delhi, are now centers for smartphone and component production. However, challenges persist. U.S. smartphone shipments grew by only 1% in Q2 2025 due to inventory stockpiling amid tariff concerns. iPhone shipments fell 11% to 13.3 million units, while Samsung’s rose 38% to 8.3 million units, and Motorola’s grew 2% to 3.2 million units. Google and TCL followed, with Google up 13% to 0.8 million units and TCL down 23% to 0.7 million units. China’s declining share reflects broader trade dynamics, with ongoing U.S.-China negotiations aiming to extend a temporary trade truce before an August 12 deadline. China’s economy, growing 5.2% in Q2 2025, is diversifying to non-U.S. markets, but its grip on smartphone manufacturing is loosening. India’s emergence as the top smartphone exporter to the U.S. signals a pivotal moment for global tech manufacturing. With Apple and others expanding operations, India is poised to strengthen its role as a high-tech hub, though sustained investment and infrastructure development will be critical to maintaining this momentum.

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India Surpasses China as Top Smartphone Exporter to the U.S., Driven… | SEINET