India Surpasses China as the Leading Smartphone Producer for the US
India has surpassed China to emerge as the foremost exporter of smartphone devices to the United States, propelled by Apple Inc’s strategy to enhance iPhone assembly within the nation. According to data, shipments from India represented 44 percent of the US market in the quarter ending June 2025. Vietnam, which hosts the majority of Samsung Electronics Co’s production, secured the second position. In contrast, China’s proportion of estimated shipments has decreased significantly from over 60 percent a year ago to merely 25 percent.
The transition stems from Apple’s expansion of its manufacturing capabilities in India, coupled with a wider trend among smartphone manufacturers to “frontload device inventories amid tariff concerns,” as noted by Canalys researchers. The production of smartphones in India has increased more than threefold relative to the corresponding period last year. Despite a decline of 11 per cent in Apple’s iPhone shipments to the US, this decrease was linked to earlier-than-usual bulk shipments.
Apple’s assembly of iPhones in India reached a value of $22 billion in the 12 months concluding in March, reflecting an approximate 60 percent increase compared to the prior year. The majority of these devices were manufactured at the facility of Foxconn Technology Group. Tata Group’s electronics division, having recently acquired Wistron Corp and managing Pegatron Corp’s operations, has emerged as a significant supplier. Apple, along with various technology firms, has been systematically shifting production away from China to mitigate risks linked to tariffs and escalating geopolitical tensions. India and Vietnam have emerged as significant alternatives within this strategic framework.
This transition has faced backlash from US President Donald Trump, who has been advocating for companies to return manufacturing jobs to the United States. Despite its global diversification, Apple persists in manufacturing the majority of its iPhones in China, with no smartphone production occurring in the United States. Nonetheless, the firm has pledged to increase domestic hiring and allocate $500 billion towards investments in the United States over the forthcoming four years.
Apple’s strategic pivot towards India has attracted the attention of Chinese authorities. The Chinese government has allegedly initiated measures to erode Apple’s competitive edge in international markets. Approximately one year prior, it postponed the approvals necessary for Apple to import machinery required for iPhone production in India. In a recent development, Chinese Customs has indefinitely withheld machinery essential for retrofitting assembly lines intended for the production of the upcoming iPhone 17. Furthermore, Beijing exerted pressure on Foxconn to repatriate more than 300 Chinese engineers and technicians from its operations in India. The deployment of these experts was initially aimed at facilitating technology transfer and providing training for workers.
