Apple Leads India Past China in Smartphone Exports to US

India has officially overtaken China as the top exporter of smartphones to the United States, a development that not only marks a seismic shift in global electronics supply chains but also places India firmly on the global map as a reliable high-value manufacturing hub.

According to data from research firm Canalys (now part of Omdia), smartphones assembled in India made up 44% of total US imports in Q2 2025, compared to a modest 13% share just a year ago. In stark contrast, China’s dominance has slipped dramatically, from a 61% share in Q2 2024 to just 25% in the same quarter this year. That’s a 240% year-on-year surge in Indian smartphone exports to the US, a milestone led almost entirely by Apple Inc.

Apple’s Strategic Pivot: The “China Plus One” Effect

This tectonic shift did not happen overnight. Apple’s strategic decision to move a substantial portion of its iPhone production to India stems from its broader “China Plus One” strategy, a supply chain diversification plan meant to reduce overdependence on Chinese manufacturing amid mounting geopolitical tensions, rising tariffs, and supply chain vulnerabilities exposed by the pandemic.

“India became the leading manufacturing hub for smartphones sold in the US for the very first time in Q2 2025, largely driven by Apple’s accelerated supply chain shift to India amid an uncertain trade landscape between the US and China,” noted Sanyam Chaurasia, Principal Analyst at Canalys.

India’s strength as a smartphone production base has been years in the making, but it is only now that the country is starting to see large-scale economic payoffs. Apple, through its contract manufacturers like Foxconn, Pegatron, and Wistron (now under Tata Electronics), has led the charge by ramping up assembly lines in Tamil Nadu and Karnataka. The iPhone 16 base models are now being exported in significant volumes directly to the US, while Pro models, though still mostly assembled in China, are expected to follow in phased transitions.

The Scale of India’s Export Boom

Apple alone exported over $5 billion worth of iPhones from India in the April–June quarter (Q1 FY26), accounting for a staggering 70% of the country’s total smartphone exports, according to a July 18 Moneycontrol report. This is a massive leap from the $3 billion worth of phones exported in the same quarter last year.

India’s total smartphone exports during Q2 2025 crossed $7 billion, a 40% year-on-year jump, powered by expanding operations at Foxconn, Pegatron, and Tata Electronics. Notably, Tata’s entry into iPhone manufacturing has not only strengthened India’s hold over smartphone production but also bolstered domestic capacity with deep-rooted indigenous partnerships.

Other Players Join In, But Apple Dominates

While Apple remains the poster child of this transformation, other global players are also exploring India more seriously. Motorola has begun shifting parts of its production base to India, though its core manufacturing still remains in China. Samsung, meanwhile, continues to rely heavily on its Vietnamese factories but has increased shipments from its Noida plant, which mostly caters to the budget-friendly Galaxy A-series models.

According to Canalys, Samsung’s US-bound shipments grew 38% year-on-year in Q2 2025, supported by aggressive promotions and improved logistics planning. However, the broader smartphone market in the US remained largely flat, growing just 1% during the quarter, evidence that macroeconomic stress and high inventory levels are keeping consumer demand in check.

Inventory Risks and Tariff Shadows

Even though smartphones have, so far, remained exempt from US tariffs in the ongoing trade spats with China, looming threats of new duties have compelled companies to frontload inventories and build buffer stock. “Vendors continue to frontload devices and maintain high inventory levels to best cope with the risk of tariffs coming into play later in the year,” said Runar Bjorhovde, Senior Analyst at Canalys.

This strategy, however, comes with its own risks. A widening gap between “sell-in” (shipments to retailers) and “sell-through” (actual consumer sales) may lead to inventory pileups, which could suppress future shipments if demand doesn’t catch up.

Why India’s Manufacturing Leap Matters

India’s rise as a smartphone export powerhouse is not just a win for Apple—it’s a moment of validation for the Indian government’s Make in India initiative and the $10 billion Production-Linked Incentive (PLI) scheme aimed at attracting global electronics giants. The PLI scheme, launched in 2020, has played a critical role in making India more competitive by offering financial incentives for domestic production and exports.

Additionally, Indian states like Tamil Nadu, Karnataka, and Uttar Pradesh have aggressively courted foreign investments with customised policies, skilled labour pools, and expedited clearances for large-scale projects.

This shift is also creating a ripple effect across the local ecosystem, spurring growth in logistics, component manufacturing, and ancillary industries, from printed circuit boards (PCBs) to camera modules and batteries.

The Road Ahead: Cautious Optimism

While India’s momentum is unmistakable, sustaining this trajectory will require more than government subsidies and Apple’s goodwill. Infrastructure bottlenecks, logistics delays, and supply chain fragmentation remain significant challenges. Moreover, India will need to build deep supplier networks and encourage component-level manufacturing to become truly self-reliant.

Still, the signs are promising.

Apple’s success is likely to serve as a template for others, inspiring more OEMs (Original Equipment Manufacturers) to tap into India’s potential. With geopolitical risks showing no signs of abating and global tech firms under increasing pressure to derisk their operations, India stands at a rare intersection of opportunity and preparedness.

For now, India can celebrate a historic breakthrough; it is not just making smartphones; it is making a statement on the global stage.