India Overtakes China as Top Smartphone Exporter to U.S. with 240% Manufacturing Surge: In a remarkable shift in global trade dynamics, India has overtaken China as the largest exporter of smartphones to the United States, according to new data released by global research firm Canalys. The report highlights a 240% year-on-year surge in smartphone manufacturing in India, signaling a dramatic pivot in global supply chains.
During the second quarter of 2025, India accounted for 44% of smartphone exports to the U.S., a stunning leap from just 13% in the same quarter last year. In contrast, China’s share fell sharply to 25%, down from 61% in the previous year. Vietnam also surpassed China, claiming 30% of smartphone exports to the U.S.
Apple Leads the Shift
The surge in Indian exports has been primarily fueled by Apple’s accelerated manufacturing shift to India, said Sanyam Chaurasia, principal analyst at Canalys. This marks the first time India has surpassed China in smartphone exports to the U.S.
“Heightened trade uncertainty between the U.S. and China has driven Apple and other tech giants to diversify their supply chains,” Chaurasia noted.
Apple has reportedly ramped up efforts to manufacture a significant share of iPhones sold in the U.S. within Indian factories. The tech giant plans to produce nearly 25% of all iPhones in India over the next few years. This move follows former U.S. President Donald Trump’s tariff threats, which pressured companies like Apple to explore domestic and non-Chinese manufacturing options.
While Apple received temporary exemptions from the reciprocal tariffs, experts warned that the respite might not last, prompting the company to fast-track its supply chain restructuring.
Other Tech Giants Follow Slowly
Other smartphone brands such as Samsung Electronics and Motorola have also begun relocating some assembly operations for U.S.-bound products to India. However, their transition has been significantly slower and on a smaller scale compared to Apple, Canalys observed.
Manufacturing Challenges Remain
Despite the massive growth, challenges persist. Yield rates in Indian and Vietnamese factories remain lower than those in China, largely due to logistical delays and inexperienced labor. Still, manufacturers are optimistic that training and infrastructure improvements will close the gap over time.
Trade Outlook and Market Trends
While smartphone shipment volumes don’t always reflect actual consumer sales, they remain a strong indicator of demand and strategic intent. Notably, U.S.-bound iPhone shipments fell 11% year-over-year to 13.3 million units in Q2 2025, signaling broader shifts in consumer behavior or supply availability.
Globally, iPhone shipments dipped 2% to 44.8 million units during the same quarter, reversing the 25.7% growth observed in Q1.
India’s growing stature in the global tech supply chain signals not just a shift in trade flows but also a vote of confidence in its manufacturing capabilities. With geopolitical uncertainty continuing to shape business decisions, India appears poised to play a central role in the future of tech manufacturing.
