United States now primarily imports smartphones from India, surpassing exports from China.
In a significant shift in global trade patterns, India has overtaken China as the top exporter of smartphones to the United States. This change, which occurred in Q2 2025, marks a dramatic reversal from the previous year when China accounted for 61% of smartphone imports to the U.S., compared to India's 14%.
The shift is largely attributed to strategic supply chain adjustments by major companies like Apple, which have expanded iPhone production capacity in India. Approximately 20% of Apple's global iPhone production capacity is now based in India, with most of India’s export capacity dedicated to the U.S. market in 2025.
The move is part of a broader "China Plus One" strategy aimed at reducing dependence on China amid increasing U.S.-China trade tensions and tariff risks. This strategy encourages companies to expand production in countries like India and Vietnam to mitigate trade risks and diversify their supply chains. Vietnam currently accounts for 30% of phone imports to the U.S., but still trails behind India.
India's favourable manufacturing policies, infrastructure improvements, and incentives for electronics manufacturing have played a significant role in attracting foreign companies to set up plants in the country. The total volume of smartphones made in India increased by 240% from the previous year, with the number of smartphones assembled in India and imported to the U.S. skyrocketing this year, accounting for 44% of phones imported to the U.S. in the second quarter of 2025.
Experts suggest that this rapid scale-up in smartphone production in India is a response to growing U.S.-China trade frictions and the prospect of tariffs on Chinese imports. The tariffs, which have been affecting the global economy significantly in recent months, have motivated Apple and other companies to diversify their production to lower-risk manufacturing hubs like India.
However, companies are still dependent on established manufacturing bases in China. As Sanyam Chaurasia, a Canalys analyst, noted, "While India has become a significant player in the global smartphone market, China remains the dominant force in manufacturing and technology development."
The resumption of trade talks between the U.S. and China, which occurred this week in Stockholm, may impact this trend. President Donald Trump has been pushing tech companies to move manufacturing to the U.S., but it remains to be seen whether these negotiations will lead to a reduction in tariffs or a change in the strategic supply chain decisions made by companies like Apple.
In the meantime, the tariffs are expected to impact more than just smartphones. Experts predict that laptops, smartphones, and even Christmas lights could soon cost more due to the tariffs. The tariffs have also reportedly delayed the long-awaited N64 remake, according to the company.
As the trade situation between the U.S. and China continues to evolve, it will be interesting to see how the smartphone export market adapts and whether India can maintain its position as the leading exporter to the U.S.
- Apple, along with other tech companies, has expanded iPhone production capacity in India as part of the "China Plus One" strategy, accounting for about 20% of its global production capacity.
- India's export capacity for smartphones, particularly to the U.S. market, has seen a significant increase, with approximately 44% of smartphones imported to the U.S. in Q2 2025 coming from India.
- This shift in smartphone manufacturing to India is largely due to India's favorable manufacturing policies, infrastructure improvements, and incentives for electronics manufacturing, which have attracted foreign companies.
- Despite India's rise, China remains the dominant force in manufacturing and technology development, as noted by Sanyam Chaurasia, a Canalys analyst.
- The tariffs on Chinese imports have motivated companies like Apple to diversify their production to lower-risk manufacturing hubs like India, but they are still dependent on established manufacturing bases in China.
- Experts predict that besides smartphones, products such as laptops, smartphones, and even Christmas lights could soon become more expensive due to the tariffs, potentially impacting businesses and consumers alike.
