India has surpassed China to become the leading exporter of smartphones to the United States, marking a significant change in the global electronics supply chain. This shift comes as companies adjust their manufacturing bases amidst trade tensions and rising tariffs. According to data from research firm Canalys, smartphones assembled in India accounted for 44% of total U.S. imports in the second quarter of 2025, a sharp increase from 13% in the same period last year. The total volume of smartphones made in India soared by 240% year-on-year. In comparison, China's share plummeted to 25% from 61% during the same period. Vietnam also surpassed China, supplying 30% of U.S. smartphone imports in the quarter.

This marks the first instance of India surpassing China in smartphone exports to the U.S.. This transition is largely attributed to Apple's accelerated supply chain shift to India amid an uncertain trade landscape between the U.S. and China. As part of its "China Plus One" strategy, Apple has been scaling up its production capacity in India over the last several years and has chosen to dedicate most of its export capacity in India to supply the U.S. market so far in 2025. Apple plans to manufacture roughly a quarter of its total iPhone output in India over the next few years.

Tamil Nadu has emerged as a leader in iPhone manufacturing in India, with approximately 70-80% of India's iPhone output originating from this region. Companies like Foxconn, Pegatron, and Tata Electronics have expanded to meet the growing demand. In the first half of 2025, India exported almost 23.9 million iPhones, with 78% of these being shipped to the U.S., compared to 53% the previous year.

While Apple is leading this transition, other global smartphone makers like Samsung and Motorola are also exploring a shift to Indian assembly lines, although at a slower pace. While key Apple devices have received temporary exemptions from the U.S.'s reciprocal tariff regime, these waivers may not be extended beyond August 1.

Sanyam Chaurasia, Principal Analyst at Canalys, noted that India has become the leading manufacturing hub for smartphones sold in the U.S. for the first time in Q2 2025. He added that Apple has been scaling up its production capacity in India and has opted to dedicate most of its export capacity in India to supply the U.S. market so far in 2025. Despite this shift, Apple still relies on established manufacturing bases in China.

In Q2 2025, iPhone shipments declined by 11% year-on-year to 13.3 million units, a correction from the 25% growth in Q1 2025. Samsung's shipments grew 38% year-over-year to 8.3 million units, while Motorola continued its expansion in the U.S., growing 2% to 3.2 million units.

This development signifies India's increasing importance in global supply chains and Apple's confidence in Indian manufacturing. It also reflects a broader trend of companies seeking to diversify their manufacturing locations to mitigate risks associated with geopolitical tensions and trade policies.