In a historic development, India has surpassed China to become the largest exporter of smartphones to the United States in Q2 2025, according to research firm Canalys. This significant shift highlights India’s rising role in global tech manufacturing, driven largely by Apple’s strategic pivot away from China amid escalating trade tensions.
India’s Surge in Smartphone Exports
India-made smartphones comprised 44% of total US imports during the second quarter, a massive leap from just 13% in the same period last year. This translates to a 240% year-over-year growth in volume. Meanwhile, China’s share plummeted from 61% to just 25%, relegating it to third place behind Vietnam.
This transformation is primarily attributed to Apple’s decision to accelerate its production in India. The company has been expanding its manufacturing capacity in India over the past few years, and now channels a significant portion of that output to the US market.
Why Apple Shifted Manufacturing to India
According to Canalys analyst Sanyam Chaurasia, Apple’s move is largely due to the “uncertain trade landscape” between Washington and Beijing. While smartphones remain exempt from Trump-era reciprocal tariffs, iPhones still face a minimum 20% levy. Apple CEO Tim Cook stated in May that “the majority of iPhones sold in the US will have India as their country of origin.”
The company’s shift is also part of a broader effort to reduce dependency on Chinese factories, especially after supply chain disruptions caused by China’s strict zero-Covid policies and recent retaliatory tariffs.
Trade Tensions Reshape Global Supply Chains
The ongoing tariff battle between the US and China has prompted many global manufacturers to diversify their supply chains. Trump’s imposition of a 145% tariff on Chinese goods earlier this year was met with a 125% counter-tariff from Beijing. Although both sides agreed to suspend these tariffs for 90 days in May, the long-term uncertainty has accelerated production relocation.
US-China trade negotiators are currently meeting in Sweden to extend the temporary truce and potentially chart a long-term resolution.
Conclusion
India’s rise as the top smartphone exporter to the US signals a pivotal moment in global manufacturing. As geopolitical and economic dynamics continue to shift, companies like Apple are investing more in India—cementing its place as a global tech production powerhouse.
