India has achieved a major milestone by becoming the largest supplier of smartphones to the United States for the first time, surpassing China, and this shift has been largely driven by Apple’s aggressive manufacturing expansion in the country. As per the latest data released by research firm Canalys, which is now part of Omdia, there has been an unprecedented 240% increase in Indian-made smartphone shipments to the US in the second quarter of 2025. This surge has led to Indian smartphones accounting for 44% of all imports into the US during this period, a remarkable jump from just 13% during the same quarter last year. Simultaneously, China’s share in the US smartphone import market took a steep dive, falling to 25% in Q2 2025 from a commanding 61% in Q2 2024. This change reflects a combination of evolving global trade dynamics, rising tensions between the US and China, and a strategic shift in Apple’s supply chain that now places greater emphasis on Indian manufacturing facilities.
Apple’s commitment to scaling its production operations in India over recent years is now bearing visible results, significantly altering global supply chain patterns. According to Sanyam Chaurasia, Principal Analyst at Canalys, India emerged as the primary production hub for smartphones entering the US market in Q2 2025. This achievement is closely tied to Apple’s accelerated transition of its supply chain to India, a move prompted by escalating trade uncertainties between Washington and Beijing. As geopolitical tensions persist, smartphone makers, particularly Apple, are re-evaluating their manufacturing strategies to mitigate future risks. While Apple continues to rely on China for the bulk of its high-end iPhone Pro models, India has become the production base for standard models like the iPhone 15 and iPhone 16. Interestingly, Apple has even started assembling certain Pro models in India, indicating a broader and more permanent shift in its global manufacturing roadmap.
Although Apple is leading this transformation, other brands such as Samsung and Motorola have also begun increasing their smartphone exports from India to the US. However, their contributions remain comparatively modest. Samsung, for instance, still conducts a large portion of its manufacturing in Vietnam, while Motorola, although diversifying its supply chain, continues to depend largely on Chinese operations. Nevertheless, the overarching trend is clear: more smartphone brands are embracing India as a key production base. This move is driven not only by the need to avoid tariffs and regulatory uncertainty but also by a growing confidence in India’s ability to manufacture not just budget smartphones, but premium models as well.
This strategic realignment of global supply chains comes despite the US smartphone market itself showing only marginal growth. In Q2 2025, the market expanded by just 1%, even as Indian exports surged. iPhone shipments to the US actually declined by 11% year-on-year, while Samsung enjoyed a 38% growth in shipments. Motorola’s shipments increased slightly by 2%, and brands like Google and TCL rounded out the top five vendors. Analysts suggest that US-based smartphone companies are increasingly focused on front-loading inventory and rapidly adapting their sourcing strategies to protect themselves against future supply disruptions. India’s evolving role as a preferred manufacturing hub is poised to reshape not just regional supply dynamics but also the broader structure of the global smartphone industry in the years to come.
