India Surpasses China in Smartphone Exports to U.S., Reports Show

In a significant shift in the global smartphone supply chain, India has officially surpassed China as the leading exporter of smartphones to the United States. According to a report released by Canalys on July 29, 2025, smartphones assembled in India accounted for 44% of U.S. imports during the second quarter of the year, a dramatic increase from just 13% in the same period last year. This development marks a crucial turning point for India's manufacturing sector and reflects ongoing geopolitical tensions and trade uncertainties involving China.

The surge in smartphone shipments from India coincides with a broader strategy by multinational companies, particularly Apple, to diversify their manufacturing bases away from China. Sanyam Chaurasia, principal analyst at Canalys, stated, "The surge in shipments from India was primarily driven by Apple’s accelerated shift toward the country at a time of heightened trade uncertainty between the U.S. and China." Apple has reportedly increased its focus on producing a significant portion of its iPhones in India, with aspirations to manufacture about 25% of all iPhones sold in the U.S. within the next few years.

In contrast, China's share of smartphone exports to the U.S. has sharply declined from 61% to 25% over the same period. This reduction in exports highlights the shifting dynamics of the global supply chain, influenced by tariffs and trade policies enacted by the Trump administration. Renauld Anjoran, CEO of Agilian Technology, a Chinese electronics manufacturer, noted, "The plan for India is moving ahead as fast as we can," emphasizing the urgency among manufacturers to relocate operations to India as part of a strategic pivot.

The increase in Indian smartphone exports is not limited to Apple; competitors such as Samsung Electronics and Motorola are also making efforts to relocate assembly operations to India, although their transitions have been slower and less extensive compared to Apple. The overall volume of smartphones made in India surged by 240% from a year earlier, demonstrating not just a quantitative increase but an important qualitative leap in the country’s manufacturing capabilities.

Despite this positive growth, the Indian smartphone industry faces challenges. Canalys reported a decline in overall iPhone shipments, which fell by 11% year on year to 13.3 million units in the second quarter of 2025. This downturn raises questions about the sustainability of the current growth trajectory amidst fierce competition and a rapidly changing technological landscape.

The implications of this shift are profound. Economically, India stands to benefit from increased foreign investment and job creation as global manufacturers expand their operations. Politically, this change may alter the balance of power in technology manufacturing and trade relations between the U.S., China, and India.

Looking ahead, experts anticipate that if the current trends continue, India could solidify its position as a global hub for smartphone manufacturing, potentially leading to greater innovation and competitiveness in the tech sector. However, the long-term viability of this growth will depend on India's ability to maintain quality standards, enhance technological capabilities, and navigate ongoing geopolitical challenges. As this landscape evolves, the vigilance of policymakers and industry leaders will be crucial in ensuring that India's ascent in the global smartphone market is sustainable and beneficial for its economy.