In a historic first, India has surpassed China to become the largest exporter of smartphones to the United States in Q2 2025, according to research firm Canalys.
This major shift highlights India’s growing role in global tech manufacturing, driven mainly by Apple’s decision to move production away from China amid ongoing trade tensions.
India’s Smartphone Export Boom
Smartphones made in India accounted for 44% of US imports in the second quarter of 2025—a sharp jump from just 13% in the same period last year.
This marks a 240% year-on-year growth in export volume. In contrast, China’s share dropped from 61% to just 25%, pushing it to third place, behind Vietnam.
The surge is largely due to Apple expanding production in India, with much of it now being shipped to the US. Apple has been steadily increasing its manufacturing operations in India in recent years.
Why Apple Shifted to India
According to Canalys analyst Sanyam Chaurasia, Apple’s shift is mainly because of the uncertain trade environment between the US and China.
Although smartphones are not directly affected by past US tariffs, iPhones still face a 20% tax. In May, Apple CEO Tim Cook said, “Most iPhones sold in the US will now be made in India.”
Apple also wants to reduce its dependence on Chinese factories, especially after the supply chain problems caused by China’s strict zero-Covid policies and new retaliatory tariffs.
Trade Tensions Reshape Global Supply Chains
Ongoing trade tensions between the US and China are forcing global tech firms to diversify production.
Earlier this year, the US imposed a 145% tariff on Chinese goods, which led to a 125% counter-tariff from China.
Although both countries agreed to pause these tariffs for 90 days in May, the uncertainty has pushed companies to relocate manufacturing.
Trade officials from both countries are now meeting in Sweden to extend the temporary deal and discuss a long-term solution.
Conclusion
India’s emergence as the top smartphone exporter to the US marks a turning point in global manufacturing.
As political and economic pressures continue to evolve, companies like Apple are increasing investments in India, helping it grow as a key tech production hub.
