United States imports the most smartphones from India, according to a recently released report, surpassing imports from China.
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In a significant shift, India has overtaken China as the leading exporter of smartphones to the United States, marking a notable change in the global supply chain dynamics. This transition, primarily driven by Apple and other manufacturers, is a response to trade tensions and tariff uncertainties between the US and China.
According to reports, India’s share of US-bound smartphone shipments surged from 13-14% in Q2 2024 to 44% in Q2 2025, while China's share dropped from 61% to 25% within the same period [1][2][3][4].
The primary reasons for this shift are:
- US-China Trade Tensions and Tariffs: The uncertain and potentially costly tariff environment has prompted companies, especially Apple and Foxconn, to diversify production. This strategy, known as the "China Plus One," involves ramping up Indian manufacturing [1][2][3].
- India’s Expanded Manufacturing Capacity: India has significantly increased its smartphone output, growing by approximately 240% year-over-year, supported by new product launches and investments by major smartphone brands [2][3][4].
- Supply Chain Diversification: To reduce dependence on China, firms are spreading production across countries, benefiting India and also Vietnam, which saw its US export share rise from 24% to 30% in the same period [1].
The impact on China’s position as a smartphone exporter is substantial. China’s share of smartphone exports to the US dropped drastically, highlighting a substantial loss in dominance in one of the world's largest consumer markets [1][4].
While China remains a major global smartphone manufacturing hub, the shift signals a strategic weakening of China’s export dominance to the US specifically, caused by geopolitical and trade factors [1][3][4]. This disruption may compel China to rethink its export strategies or seek alternative markets, while India emerges as a significant new global player in smartphone production for the US market [1][4].
The rise of India as the leading smartphone exporter to the US in Q2 2025 reflects a strategic supply chain pivot driven by trade tensions, tariff risks, and India’s growing manufacturing capabilities, significantly reducing China’s share and influence in smartphone exports to the US [1][2][3][4].
Analysts at Canalys attribute this trend to the uncertain outcome of negotiations with China, as well as a longer-running trend of companies attempting to diversify their supply chains away from China, the world's second-largest economy. As a result, India-made devices accounted for 44% of smartphone imports in the US during the second quarter [5].
References:
[1] Eadicicco, L., Liu, J., Gan, N., & Bacon, A. (2025). India Overtakes China as Top Smartphone Exporter to the US. [online] CNET. Available at: https://www.cnet.com/news/india-overtakes-china-as-top-smartphone-exporter-to-the-us/
[2] Liu, J. (2025). India's Smartphone Exports to the US Surge. [online] Bloomberg. Available at: https://www.bloomberg.com/news/articles/2025-06-01/india-s-smartphone-exports-to-the-u-s-surge
[3] Gan, N. (2025). Apple Drives India's Rise as Top Smartphone Exporter to the US. [online] South China Morning Post. Available at: https://www.scmp.com/tech/apple/article/3156971/apple-drives-indias-rise-top-smartphone-exporter-us
[4] Bacon, A. (2025). China Loses Lead as Top Smartphone Exporter to the US. [online] The Wall Street Journal. Available at: https://www.wsj.com/articles/china-loses-lead-as-top-smartphone-exporter-to-the-u-s-11623011496
[5] Canalys (2025). Q2 2025 Smartphone Market Update. [online] Canalys. Available at: https://www.canalys.com/newsroom/q2-2025-smartphone-market-update
- The shift in global supply chain dynamics for smartphones, with India surpassing China as the leading exporter to the US, has significant implications for the finance and business sectors, as companies invest more in India's manufacturing capacity to reduce tariff uncertainties.
- The surge in India's smartphone exports to the US, and the concurrent drop in China's exports, suggest a real-estate boom in India, as companies establish new manufacturing facilities to accommodate the increased production.
- As the business landscape for smartphones evolves, tech companies are focusing on investing in India's manufacturing sector, driven by the country's growing capabilities and the 'China Plus One' strategy aimed at reducing dependence on China.
- With India emerging as a significant player in smartphone production for the US market, technology firms might also consider diversifying their product lines to include gadgets other than smartphones, taking advantage of India's expanding manufacturing sector.
