India overtakes China as top supplier of smartphones to US amid Apple’s production shift

In a significant shift in the global electronics landscape, India has overtaken China to become the foremost supplier of smartphones to the United States. This milestone aligns with Apple's strategic move to diversify its supply chain and enhance iPhone production in India. Recent data from Canalys reveals that during the second quarter of 2025, India accounted for 44% of all smartphone shipments to the US, leaving Vietnam and China trailing at 30% and 25%, respectively. Just a year prior, China dominated this market with over 60% share. The total smartphone shipments for this quarter reached an impressive 27.1 million units, as reported by Bloomberg. The surge in shipments from India can be attributed to Apple's initiative to bolster production in the country, alongside other smartphone manufacturers who are stockpiling inventory amid ongoing tariff uncertainties. Notably, the number of smartphones produced in India for the US market has more than tripled compared to the same quarter last year. Despite this increase in production, Apple's iPhone shipments to the US saw an 11% decline during this quarter. Analysts suggest that this drop is linked to changes in Apple's shipping strategy, which included sending a large volume of units earlier in the year to build up inventory. The transition from China to alternative manufacturing hubs like India and Vietnam has been in motion for several years, driven by geopolitical tensions, rising labor costs, and trade restrictions. While a majority of iPhones are still manufactured in China, India's manufacturing role is rapidly expanding. In the past fiscal year, Apple reportedly produced $22 billion worth of iPhones in India. Although the company has no smartphone production facilities in the US, it has committed to investing $500 billion in the country over the next four years while also increasing domestic employment.