India has officially overtaken China to become the largest exporter of smartphones to the United States, according to a report by research firm Canalys. This marks a pivotal moment in the global tech supply chain, reflecting the growing shift of manufacturing operations away from China amid ongoing geopolitical tensions and tariff-related uncertainties.
In the second quarter of 2025, smartphones assembled in India accounted for 44% of U.S. imports, a sharp increase from just 13% during the same period last year. Meanwhile, China’s share fell dramatically to 25%, down from 61%. Vietnam also edged ahead of China, contributing 30% of U.S. smartphone imports.
India, Vietnam overtake China in U.S. smartphone manufacturing
The dramatic surge in India’s exports is largely attributed to Apple’s accelerated manufacturing shift toward the country. Sanyam Chaurasia, Principal Analyst at Canalys, confirmed that this is the first time India has surpassed China in smartphone exports to the U.S. Apple is reportedly working toward producing 25% of all iPhones in India within the next few years.
This transition follows persistent pressure from former U.S. President Donald Trump, who had pushed Apple CEO Tim Cook to move iPhone production to the U.S. While many Apple products were granted temporary exemptions from Trump’s tariffs, the risk of future trade barriers has prompted the company to diversify its manufacturing footprint.
Other major smartphone brands like Samsung and Motorola have also started moving parts of their U.S.-bound assembly to India, but their progress has been slower and more limited in scale compared to Apple.
Manufacturing firms are increasingly relying on “last-mile assembly” in India, using the country as a key hub to serve the U.S. market. Renaud Anjoran, Executive Vice President at China-based Agilian Technology, noted that his company is actively renovating a facility in India with plans to begin trial production shortly, followed by full-scale manufacturing.
However, he also pointed out that yield rates, a measure of manufacturing efficiency, remain lower in India and Vietnam than in China. Despite this, the shift continues, driven by strategic needs to diversify supply chains and reduce dependence on a single country.
India’s rise as a top exporter signals a major reshaping of global electronics manufacturing, with long-term implications for trade, technology, and labor markets across Asia.