In a remarkable shift in global trade dynamics, India has overtaken China to become the largest supplier of smartphones to the United States for the first time. This milestone, achieved in the quarter ending June 2025, marks a significant moment not only for India’s manufacturing capabilities but also in the ongoing geopolitical reshaping of global supply chains.
According to research firm Canalys, India accounted for 44 percent of all smartphone shipments to the U.S. in the June quarter, a dramatic surge from just 13 percent a year ago. In contrast, China, which previously supplied 61 percent of America’s smartphones, saw its share fall sharply to just 25 percent. This shift signifies a massive 240 percent increase in smartphone exports from India to the U.S. within a year.
The key driver behind this transformation is Apple’s strategic decision to diversify its manufacturing base. Amid growing trade tensions between the United States and China, and with former President Donald Trump threatening further tariff hikes, Apple has gradually shifted its iPhone production to India. This shift aligns with the company’s “China Plus One” strategy, which aims to reduce dependence on China by expanding operations in alternative markets like India.
Apple’s move wasn’t without political resistance. Trump had previously warned Apple against increasing its dependence on Indian production. However, Apple chose to stay its course. Canalys Principal Analyst Sanyam Chaurasia noted that Apple’s supply chain transition was carefully calculated, with India emerging as the primary supplier of base iPhone models to the U.S. market.
The shift became especially evident in March 2025, when 97.6 percent of iPhones exported from India were sent to the United States, up from 81.9 percent in February. Fearing a potential new tariff from the Trump administration, which was initially scheduled to come into effect on August 1, Apple ramped up its exports by 219 percent in March alone. This preemptive move helped the company mitigate potential risks from changing U.S. trade policies.
While Apple leads this transition, other brands like Samsung and Motorola have also increased their smartphone exports from India to the U.S., though at a more modest pace. Motorola still heavily relies on China for manufacturing, while Samsung leans on its production facilities in Vietnam. In contrast, India’s domestic manufacturing ecosystem is growing rapidly, with key players such as Foxconn and Tata Electronics producing iPhones locally. Samsung also operates its own factory in India, while Motorola uses Dican Technology to serve the U.S. market.
This transformation is a strong signal that India is becoming a formidable hub for high-end electronics manufacturing. The rise in exports is expected to generate employment and boost the Indian economy further. At the same time, it highlights India’s increasing relevance in global technology supply chains.
However, this growth also comes with geopolitical caveats. As trade tensions between the U.S. and China continue, India must tread carefully. Any sudden shifts in U.S. policy—especially under Trump’s second term—could impact India’s export-driven tech sector.
Still, the developments show that India is firmly positioning itself as a global player in smartphone manufacturing. As the country continues to attract investment and build robust supply chain infrastructure, it is clear that India’s moment in the global tech arena has arrived.
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