India has overtaken China to become the leading exporter of smartphones to the United States for the first time, marking a significant shift in the global electronics supply chain as companies recalibrate their manufacturing bases amid trade tensions and rising tariffs.
According to data from research firm Canalys, smartphones assembled in India accounted for 44% of total US imports in the April–June quarter, up sharply from just 13% in the same period last year.
Total volume of smartphones made in India soared 240% from a year earlier, Canalys said.
In comparison, China’s share plummeted to 25% from 61% during the same span.
Vietnam also surpassed China, supplying 30% of US smartphone imports in the quarter.
Apple leads the shift to India amid US-China trade tensions
Sanyam Chaurasia, principal analyst at Canalys, said the sharp rise in shipments from India was largely fuelled by Apple’s rapid pivot toward the country amid escalating trade tensions between the US and China.
This marks the first instance of India surpassing China in smartphone exports to the US.
Apple has ramped up efforts to produce a larger share of its iPhones in India, with plans to make roughly a quarter of its total iPhone output in the country over the next few years.
This comes as former President Donald Trump, who is seeking a return to office, has again threatened additional tariffs on Apple if it does not shift more production to the US
Although some key Apple devices, including iPhones and MacBooks, have received temporary exemptions from the US’s reciprocal tariff regime, those waivers may not be extended beyond August 1.
Other firms trail behind in India pivot
While Apple is leading the transition, other global smartphone makers such as Samsung Electronics and Motorola are also exploring a shift to Indian assembly lines, albeit at a slower pace and smaller scale.
Renauld Anjoran, CEO of China-based electronics manufacturer Agilian Technology, said a growing number of global manufacturers are relocating their final assembly operations to India, expanding capacity in the South Asian country to better cater to the US market.
His company is currently renovating a facility in India with plans to begin trial runs and eventually scale up to full production.
“The plan for India is moving ahead as fast as we can,” Anjoran said in a CNBC report.
The company expects to begin trial production runs soon before ramping up to full-scale manufacturing.
Demand outlook remains uncertain
Despite the boost in shipments, Apple’s global iPhone deliveries declined by 11% year-on-year in the second quarter to 13.3 million units, according to Canalys.
This marked a reversal from the 25% growth seen in the previous quarter.
Shares of Apple have fallen 14% this year, pressured by concerns over trade headwinds and growing competition in smartphones and AI.
Though Apple has started assembling iPhone 16 Pro models in India, Canalys said the company still relies on China’s mature manufacturing ecosystem for most of its high-end devices.
Meanwhile, the US government’s tariff posture remains a moving target. Although a 26% tariff on Indian imports was imposed in April, it is significantly lower than the duties placed on Chinese goods at the time. Those tariffs have since been paused, but only until August 1.
The post India overtakes China as top smartphone exporter to US amid shifting supply chains appeared first on Invezz