India Overtakes China as Top Smartphone Exporter to the United States – No More iPhones From China?

India has now become the top smartphone exporter to the United States, overtaking China for the first time. This shift shows how the global manufacturing supply chain is moving away from China. Research firm Canalys shared this update in its latest report.

In the second quarter of 2025, smartphones made in India accounted for 44% of all U.S. smartphone imports. Last year, during the same period, this number was just 13%. That’s a massive jump of 240% in smartphone exports from India to the U.S.

India Overtakes China as Top Smartphone Exporter to the United States

At the same time, China’s share dropped sharply. Only 25% of smartphones exported to the U.S. came from China this year, compared to 61% last year. Vietnam also performed better than China, holding a 30% share in U.S. smartphone imports.

The main reason behind India’s rise is Apple’s increasing focus on the country. Apple has been shifting more of its iPhone production to India due to the growing tensions between the U.S. and China. According to Canalys analyst Sanyam Chaurasia, this is the first time India has outpaced China in smartphone exports to the U.S.

Apple wants to make around 25% of its iPhones in India in the next few years. The company started moving faster after facing pressure in the U.S. over tariffs. Former President Donald Trump had warned Apple about higher tariffs and urged the company to make iPhones in the U.S. But experts believe it’s nearly impossible, as it would make iPhones too expensive.

Even though Apple received some relief from tariffs, many officials warned that this could change anytime. Other smartphone brands like Samsung and Motorola are also trying to move some of their production to India. But their progress has been slower compared to Apple.

Renaud Anjoran, a top executive at Agilian Technology, said many companies are now doing their final assembly in India. His company, based in China, is even setting up a new facility in India. Trial production is expected to start soon.

However, experts say that manufacturing in India and Vietnam is still not as efficient as in China. The yield rate is still lower.

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Meanwhile, iPhone shipments to the U.S. dropped by 11% year-on-year in the second quarter. Globally, Apple shipped 44.8 million iPhones during the same period, which is 2% less than last year.

Apple has started assembling the new iPhone 16 Pro models in India. But for now, it still depends heavily on Chinese factories for meeting U.S. demand.

In April, Trump imposed a 26% tariff on Indian imports. This was still much lower than the tariffs on Chinese products. But those duties have been paused for now, with a decision expected by August 1.

India’s growing role in smartphone manufacturing marks a major change in global trade. While challenges remain, the country is quickly becoming a key player in the tech supply chain.