India has overtaken China for the first time as the largest supplier of smartphones to the United States, marking a significant shift in global supply chains and manufacturing power. According to research firm Canalys, India accounted for 44% of smartphone exports to the U.S. in Q2 2025, while China’s share plummeted to just 25%, down from 61% a year ago.
Apple’s Supply Chain Pivot Powers India’s Rise
A major catalyst behind this transformation is Apple’s “China Plus One” strategy, where the tech giant has diversified its manufacturing operations beyond China. Amid escalating geopolitical tensions and fears of U.S. tariffs on Chinese goods, Apple began shifting a substantial portion of its iPhone production to India.
- As of March 2025, 97.6% of India’s iPhone exports were directed to the U.S., a significant jump from 81.9% in February.
- This surge was partly driven by the threat of new tariffs proposed by U.S. President Donald Trump, which were delayed until August 1, prompting Apple to expedite shipments in March, leading to a 219% increase in exports.
Foxconn and Tata Electronics, two of Apple’s key manufacturing partners, have played a pivotal role in scaling up iPhone production in India. While Apple still relies on China for some models, India has emerged as the lead supplier of base models to the U.S.
India’s Export Growth Outpaces Rivals
Other major smartphone manufacturers such as Samsung and Motorola have also increased exports from India to the U.S., but their growth has lagged significantly behind Apple.
- Motorola continues to depend heavily on China for manufacturing.
- Samsung, although operating a factory in India, remains largely dependent on Vietnam for global supply.
The structural shift underscores India’s growing prominence in the global smartphone supply chain, particularly as Western companies seek to de-risk their operations from overreliance on China.
Strategic Implications and Economic Impact
This shift brings several implications for India:
- Economic Boost: The spike in smartphone exports is expected to generate employment, attract foreign investment, and strengthen India’s manufacturing ecosystem.
- Strategic Caution: Experts warn that India must navigate carefully amid the U.S.–China trade conflict, especially if Trump or other U.S. leaders adopt aggressive trade stances that could eventually impact Indian exporters as well.
Despite these risks, analysts view India’s performance as a landmark development. Canalys Principal Analyst Sanyam Chaurasia noted that Apple’s strategic relocation of its supply chain reflects long-term confidence in India’s capabilities.
India’s emergence as the top smartphone exporter to the United States in June 2025 signals a profound reshaping of global tech manufacturing dynamics. Led by Apple’s pivot and accelerated by shifting geopolitics, this milestone positions India not just as a low-cost alternative but as a strategic hub in the next generation of global supply chains.
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